Many clients have asked me in the past weeks about a Deed-in-Lieu of foreclosure.  What are the benefits, what are the drawbacks?

Well, a deed-in-lieu of foreclosure is a process by which the homeowner Deeds the home back to the lender.  Basically they turn the keys in to the bank.  A deed-in-lieu has several benefits:

1. Homeowner avoids foreclosure
2. No deficiency judgement

A deed-in-lieu may be reported as a foreclosure on ones credit report and a homeowner should discuss this with their lenders.   Also, a deed-in-lieu needs to be approved by the primary lender.  Typically, lenders will want the homeowner to attempt a “short sale” prior to giving authorization for a deed-in-lieu, and most of the time the property can only have one loan.

Are you experiencing financial difficulties and looking for advice on the options available to you?  Contact me today,  I am personally committed to helping 100 Maryland homeowners prevent foreclosure in 2010.