Deed In-Lieu of Foreclosure :

A Deed In-Lieu transfers all rights and title to a property from the buyer/ borrower to the lender, effectively ending the contract and any obligations between the parties. This instrument saves time, attorney fees and emotional upheaval.

If you are a homeowner about to be foreclosed upon, this is the instrument that could salvage your credit and allow you to move on in life. If you are in this position you already know that your credit has been negatively affected, but a foreclosure on your report could prevent you from having a place to live. Not only will banks be unwilling to lend you money to buy a home, landlords now look unfavorably on individuals with foreclosures on their credit report. And most savvy landlords do check credit reports, along with references and rental history.

A foreclosure will remain on your credit report for ten years, so you should try and avoid it at all costs.

If you are a lender faced with having to reclaim your property, the Deed In-Lieu of Foreclosure can save you months of hassle and thousands of dollars in attorney fees. The foreclosure process has several steps all of which need the attention of an attorney. And you know they don't work for free. Plus, while you are working on the paperwork you are unable to take possession of the property even if the defaulting borrower has moved out. The property is not legally yours until everything is complete.

No one buys real estate with the intention of losing it. Whatever circumstances caused the need for foreclosure, it is definitely unpleasant for the borrower as well as a financial problem for the lender. If both parties can remain amicable and can agree to execute a Deed In-Lieu of Foreclosure, both will be ahead financially and emotionally.

The transfer of the property back to the lender will be completed and both parties can move ahead. Neither will have the right to make claims for damages against the other.

It should be noted that this deed will only work if there are no additional encumbrances on the property. It could in some instances be used to remove a second lien on a property, but only if the lender is willing to assume the first lien.

The Deed In-Lieu of Foreclosure is a document which is recorded and which puts the world on notice regarding ownership of the property. It must be executed in front of a notary and then taken to your County recorder's office.

Home mortgage Deed In Lieu of Foreclosure. Deed in Lieu of foreclosure for home mortgages Under the  Obama  Mortgage Loan Modification Plan.   Learn About Short Sales and Deed in Lieu for Home Mortgages Resources about the new housing bill, home stabilization and information about  short sales, deeds and loan modification programs. Information about  hardships and how to get approved for a Deed In Lieu on your mortgage loan due to an upside down mortgage or hardship condition.