If you are eligible for the home affordable mortgage program s foreclosure alternative programs supply your lender with information about these programs. Homeowners in distress can approach their lenders to find out if a deed in lieu of foreclosure is an option.
A deed in lieu of foreclosure is a potential option taken by a mortgagor or homeowner usually as a means to avoid foreclosure.
How to get a deed in lieu of foreclosure. In simplest terms a deed in lieu of foreclosure is a document transferring the title of a home from the homeowner to the mortgage lender. Your job is to convince the lender they will benefit through deed in lieu. Contact your lender explain your situation and ask to begin the dil process.
This typically involves submitting an application along with documented proof of your financial situation. You ll need to show the bank many financial documents which. In this process the mortgagor deeds the collateral property which.
How to negotiate a deed in lieu of foreclosure. A deed in lieu of foreclosure is generally a last resort step taken by a homeowner to avoid a foreclosure says alesia parker senior branch manager at silverton mortgage an atlanta based. Each lender and each situation is different.
Provide documents that show your income monthly expenses and bank account balances. To avoid the actual foreclosure process the homeowner may opt to use a deed in lieu of foreclosure also known as a mortgage release. Often called cash for keys the option allows homeowners to leave the.
Explain your situation and ask for a loss. How does a deed in lieu of foreclosure work. Contact your lender s loss mitigation department.
Losing a home to foreclosure is devastating no matter the circumstances. Banks would often make deed in lieu of foreclosure a more appetizing option by throwing in some cash to sweeten the deal. The application will need to be filled out and submitted along with documentation about the borrower s income and expenses including.
Steps in the deed in lieu of foreclosure process. If you can do this most lenders will agree to work with you to avoid foreclosure. Find the company that owns your mortgage and call them.
You ll need to fill out an application and show proof that you re. The lender is basically taking back the property. The first step in obtaining a deed in lieu is for the borrower to request a loss mitigation package from the loan servicer the company that manages the loan account.