Considering a “Deed in Lieu of Foreclosure”? Eight things to know!
If you are a seller who is considering “Deed in Lieu of Foreclosure” Eight things you need to know!
If you are a seller who considers “Deed in Lieu of Foreclosure” the most important points to be aware are the following:
1. In most cases a Deed in Lieu of Foreclosure is better than opting to be foreclosed on your home.
2. Short Sales are different from Deed in Lieu of Foreclosure. The Borrower could be still liable for the loan amount not covered by the short sale as well as some Tax Liability as well.
3. The Borrower must approach the Lender and the lender must agree, because the law is clear that the lender cannot approach a homeowner about giving up their home.
4. The most important point to keep in mind is that “The Equity” will be lost on the home.
5. There could be some Tax Consequences as well.
6. The Credit History is affected by this action as well. Although it is better than a Foreclosure, as well as better than a Short Sale, still it is a black mark on the Borrower’s Credit History.
7. I would recommend, before you proceed with this action, talk with your Tax Advisor as well as a Mortgage Broker to understand the consequences of this type of action.
8. Lastly before you sign over the Deed also consult with a local Realtor to make sure what the Local Market is like where you live. Keep in mind you might not need to turn your deed over. It is possible that due to the short inventory you can get your home sold fast and without too much difficulty and maintain your Good Credit as well as your Equity on the home!
Then once you have all the information you can make an informed decision and do what is best for you in your circumstance!
If you are a consumer who is considering buying or selling a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 or emails me at firstname.lastname@example.org or visit one of my websites at http://www.endrebarath.com Your Pet Friendly Realtor. I contribute a portion of my commission to Local Animal Rescue Organizations.