What is deed in lieu?
Deed in lieu is a method that can be used to avoid a foreclosure on your record. The homeowner agrees to give the bank deed to the house in exchange for the bank not filing foreclosure. Neither party can force a deed in lieu, it must be agreed upon by the homeowner and mortgage… Read More »
Is a deed in lieu better than foreclosure?
Yes, in some respects a deed in lieu may be less harmful than having a foreclosure on your credit report. Each lender will have their own underwriting guidelines and view deed in lieu/ foreclosure differently. Therefore, you should inquire about your bank’s specific rules regarding deed in lieu.
Do I owe the bank money after a deed in lieu?
Possibly, a deed in lieu does not necessarily remove your liability from the loan. Even though you voluntarily gave the bank the property, they may still hold you responsible for the loan balance. Therefore, you should review the deed in lieu documents to see if the bank will be waiving the loan balance.
Is a deed n lieu better than bankruptcy?
In many respects, bankruptcy is more helpful to homeowners than a deed in lieu. For instance, in bankruptcy you can remove your liability on the loan. On the other hand, a deed in lieu does not necessarily release you from the debt. Additionally, there may be tax consequences, such as a 1099C with a… Read More »
