Re: explain deed in lieu of foreclosure
Posted by njdave on August 18, 2002 at 08:47:08:
In Reply to: explain deed in lieu of foreclosure posted by patricia rushing on August 18, 2002 at 06:36:39:
To avoid a lengthy and expensive foreclosure process, a foreclosing lienholder might agree to allow you to simply convey your ownership interest to the bank/lienholder as payment in full. It would be your act of "deeding the property to the bank in lieu (instead) of (them paying for) foreclosure procedings"
However, this option is only considered in certain situations...You must have exhausted all efforts to sell the home (professionally marketed at it's as-is, fair market value) and you must demonstrate that you don't have the resources to make the monthy payment... or make up the difference between the sale price and what is owed.
A DIL is an unlikely event.
Any property properly priced and exposed to the market should sell quickly.
Sounds like you may need a preapproved short sale.
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