A Deed in Lieu of Foreclosure rather than a foreclosure might be an
alternative for home owners in financial distress. A Deed in Lieu of
Foreclosure is when the home owner voluntarily agrees to sign the deed
over to the mortgagee (Bank). Similar to short sales, a Deed in Lieu of
Foreclosure, the terms need to be negotiated with the bank. Please
don't just leave your keys in the mailbox with and a note for the bank!
For
success a Deed in Lieu of Foreclosure is usually predicated on the fact
that there is only 1 lien on the home. Second loans, tax liens, home
equity lines of credit, etc.... will make it nearly impossible to do
this type of transaction. The banks have not been doing a lot of these, but if they are willing to it is an option to going through putting your home on the market and doing a short sale.
There are advantages both to the home owner and the bank in a Deed in Lieu of Foreclosure.
Homeowner Benefits:
- Avoid the embarrassment of a foreclosure
- Potentially being released from owing the balance of the loan after the sale
- Avoid the hassles of selling your property, no cleaning the property up, no showings, etc...
- Less impact on the home owners credit than a foreclosure
Lender Benefits:
- Saves Time...
- Saves Money ....
To
foreclose on a property in Massachusetts the process can take many,
many months. Every month that goes by costs the bank money in carrying
costs. Once the Bank starts foreclosure proceedings on your home, the
bank can plan on spending $35,000 to $50,000 in expenses. A Deed in
Lieu of Foreclosure can be a relatively simple way to get out of a
house you can't afford. This type of transaction is being considered
more and more by the banks.
If a Deed in Lieu of Foreclosure is not a possibility, than a short sale
is the next and final step to prevent the bank from taking your home.
Remember, don't let the bank take your home, you have many options
before the bank forecloses.
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I am a certified short sale specialist and handle doing short sales in Merrimack Valley Massachusetts, and Middlesex County including the communities of Andover, Billerica, Boxford,Burlington, Chelmsford, Dracut, Georgetown, Groveland, Haverhill, Lawrence, Lowell, Merrimac, North Andover, Newbury, Newburyport, North Reading,Reading, Rowley, Tewksbury, Tyngsboro, Westford, Wilmington, West Newbury If you think you are in danger of losing your home in a foreclosure call me today. Of course the consultation is of no obligation to you and is strictly confidential. Call Kevin Vitali at 978-360-0422.