Archive for June 13th, 2009

Deed in leiu is one alternative to foreclosures

 Deed In Lieu

With all this talk about short sales and foreclosures in Colorado Springs there are many consumers as well as REALTORS who are uncertain about what a Deed in Lieu is.   

f you are interested in a short sale, It’s important to  utilize a Colorado Springs Real Estate Agent that specializes in Pre-foreclosures, Foreclosures, and Short Sales; and has a successful and ethical track record.  Call Kathy Torline – Nordstrom, 719-287-1049.  

A deed in lieu of foreclosure occurs when an owner voluntarily gives a deed to the property to the lender in order to avoid the foreclosure process.  It is commonly called a deed in lieu. 

The benefit to the lender is it saves the time and expense of the foreclosure.  The lender will typically only accept a deed in lieu if there are no other liens on the property as they will want a clean title.   Also, most lenders will want to know that all other options have been exhausted.   HUD has a very comprehensive explanation on their web site. 

The major advantages to the homeowner:

 ** Immediately releases the owner from most or all of the personal indebtedness associated with the defaulted loan.

 ** The homeowner may receive more generous terms than in a formal foreclosure.

** Credit will be less damaged compared to a  foreclosure. Read the rest of this entry »

Tags: colorado springs forclosures, deed in lieu of foreclosure, how to avoid foreclosure, pre-forecosure, short sale options, short sales in Colorado Springs, What is a deed in lieu?