Can anyone share their experiences or stories about executing a “deed in lieu of foreclosure”? I have seen banks list this on their website as an option when faced with foreclosure, but I haven’t heard any testimonials about this process. Some basic questions I have are:
Under what circumstances would a bank accept a “deed in lieu of foreclosure”?
Are these circumstances different than those under which the bank would accept a short sale offer?
Why would the bank choose one over the other?
How long does it take to agree on a “deed in lieu”?
Can you stop making payments while pursuing this option?
Deed in Lieu of foreclosure is when the lender and borrower agree to avoid the expense and hassle of the foreclosure process and the property is given over to the lender who then presumably sells it. It actually makes a lot of sense when the value is only a little less than the mortgage, because it lessens property deterioration during the FC process, speeds everything up, and is pretty common among private TD lenders. Banks have their rules and bureaucracies, and have to do everything the hard way…don’t want to admit their mistakes, etc., so they do it less frequently.
Deed in Lieu of foreclosure is when the lender and borrower agree to avoid the expense and hassle of the foreclosure process and the property is given over to the lender who then presumably sells it. It actually makes a lot of sense when the value is only a little less than the mortgage, because it lessens property deterioration during the FC process, speeds everything up, and is pretty common among private TD lenders. Banks have their rules and bureaucracies, and have to do everything the hard way…don’t want to admit their mistakes, etc., so they do it less frequently.
Deed in Lieu of foreclosure is when the lender and borrower agree to avoid the expense and hassle of the foreclosure process and the property is given over to the lender who then presumably sells it. It actually makes a lot of sense when the value is only a little less than the mortgage, because it lessens property deterioration during the FC process, speeds everything up, and is pretty common among private TD lenders. Banks have their rules and bureaucracies, and have to do everything the hard way…don’t want to admit their mistakes, etc., so they do it less frequently.
Deed in Lieu of foreclosure is when the lender and borrower agree to avoid the expense and hassle of the foreclosure process and the property is given over to the lender who then presumably sells it. It actually makes a lot of sense when the value is only a little less than the mortgage, because it lessens property deterioration during the FC process, speeds everything up, and is pretty common among private TD lenders. Banks have their rules and bureaucracies, and have to do everything the hard way…don’t want to admit their mistakes, etc., so they do it less frequently.
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