Deed in Lieu of Foreclosure vs. a Short Sale
A Deed in Lieu of Foreclosure can be a great alternative to look into before considering a short sale. Basically a Deed in Lieu of Foreclosure is where the owner of the property voluntarily agrees to sign the deed over to the bank. Like a short sale, a Deed in Lieu of Foreclosure, needs to have the terms negotiated and the bank must agree. Don't just leave the keys in the mailbox with a note for the bank.
A successful Deed in Lieu of Foreclosure is predicated on the fact that there is generally only one lien on your property. That means no second loans, no tax leins, no home equity lines of credit.
There are advantages both to the home owner and the bank in a Deed in Lieu of Foreclosure.
For the Homeowner:
1 Avoid the embarrassment of a foreclosure
2 Potentially being release from owing a large sum of money
3 Avoid the hassles of selling your property
4 Less impact on the home owners credit than a foreclosure
For the Bank:
1 Saves Time...
2 Saves Money ....
To foreclose on a property in Massachusetts it can take 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. 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.
Has the foreclosure notice been delivered? Are late mortgage payments piling up?
Call Kevin Vitali your Massachusetts Short Sales Realtor for a free consultation on what your options may be to a foreclosure.
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This post was provided by Kevin Vitali of EXIT Group One Real Estate In Tewksbury MA. You can contact Kevin by email at kevin@kevinvitali.com or call 978-360-0422. Your Massachusetts Short Sale Realtor
Real Estate Services in the northeast Massachusetts, around the Merrimack Valley, Southern New Hampshire including the towns of Andover, Billerica, Boxford, Chelmsford, Dracut, Georgetown, Groveland, Haverhill, Lawrence, Lowell, Merrimac, North Andover, Newbury, Newburyport, North Reading, Rowley, Tewksbury, Tyngsboro, Westford, Wilmington, West Newbury