What Is A Deed In Lieu Of Foreclosure?
Are you facing foreclosure? If so, you have some options regarding what to do next that don’t involve being evicted from your property. One of those options is to surrender the deed to your mortgage instead of allowing the bank to foreclose on the property. This is known as a deed in lieu of foreclosure. This is a better option for many. In this article, the Columbus, OH, foreclosure defense attorneys at Kohl & Cook Law Firm, LLC will discuss deed in lieu of foreclosure as a potential option for avoiding foreclosure.
The deed in lieu of foreclosure process
A deed in lieu of foreclosure is an agreement with your lender on how to deal with your payment deficits. As the term implies, it involves forfeiting the deed to your home so that the lender doesn’t foreclose on it. In exchange, the lender will not put you through the pain of foreclosure and could offer you some financial relief.
This is a good option if you’re prepared to move on from your home, can’t make payments, and don’t want to see your credit score tank because of a foreclosure. You will need to give up your legal rights to the house.
Many homeowners end up behind on their mortgage. Financial stressors can come unexpectedly. You may have lost your job, seen a drop in your income, gone through a divorce, or have significant medical debt. Whatever the issue, you do have options.
Mortgage lenders provide homeowners with options when making payments becomes impossible.
Pros and cons of a deed in lieu of foreclosure
Every foreclosure defense option has pros and cons. However, when the pros of a situation outweigh the cons, it’s worth taking a closer look.
The biggest “pro” to a deed in lieu of foreclosure is ridding yourself of substantial mortgage debt. You won’t have to deal with a public foreclosure, which is a substantial ‘pro’ considering how public foreclosures are. You also will not be responsible for selling your home, which can be a lot of work.
The biggest con is that you lose your home in the process. Further, it could be difficult to get another mortgage in the future. A deed in lieu of foreclosure could have a negative impact on your taxes. In some cases, a homeowner will not be eligible for a deed in lieu of foreclosure. There will also be some impact on your credit score, but it won’t be as bad as having a foreclosure on your credit report.
What does your foreclosure defense lawyer do?
A foreclosure defense attorney can help streamline the process. Your lawyer will ensure that you’re not missing any information in your application. This could result in either rejection or delay. Your lawyer can also help you avoid a deficiency judgment.
Talk to a Columbus, OH, Foreclosure Defense Lawyer Today
Kohl & Cook Law Firm, LLC, represents the interests of homeowners who are facing foreclosure. Call our Columbus foreclosure defense lawyers today to schedule an appointment, and we can begin discussing your options right away.
