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.

** The lender will show the borrower’s debt as ‘paid’, which will confirm the borrower’s fulfillment of debt.

** It avoids the embarrassment of going through a foreclosure.

** The homeowner may also be able to negotiate how the transaction is reported on your credit report.

I also urge any homeowner to seek professional legal and tax advice on the ramifications of a Deed in Lieu.

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• Colorado Springs Homes, 4 things to know about a short sale - Part I of Short Sales Series
• Avoid Foreclosure, Know Your Options - Part II of Short Sales Series
• Colorado Springs Home Foreclosures – 11 benefits of a short sale - Part III of Short Sales Series
• The final step in the Colorado Foreclosure process – Part IV of Short Sale Series 
• How long does it take to do a Colorado Springs Short Sale? - Part V in Short Sale Series
• What are the credit consequences on a short sale? - Part VI of Short Sale Series
• Are there tax ramifications to a Colorado Springs short sale? — Part VII of Short Sale Series
• What you MUST know about short sales on FHA loans - Part VIII of Short Sale Series
• How do you price a Colorado Springs short sale? - Part IX of Short Sale Series
•  21 reasons short sales fail - Part X of Short Sale Series
• 8 Things You Must Know About VA Short Sales - Part XI
• Oh no, don’t tell me you have other liens on your short sale property - Part XII

If 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

Email:  KTorline@msn.com

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?

This entry was posted on Saturday, June 13th, 2009 at 5:02 am and is filed under For Sellers, Foreclosures and Short Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1. Deed in leiu is one alternative to foreclosures | Low Loan Refinancing said at June 13th, 2009 at 5:10 am

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