Are You Contemplating A Deed-In-Lieu Of Foreclosure On Your House?



Hello, I’m Matt Fetick with SoldByShortSale.com and :k1:’s most successful short sale professional. I’m proud to do so and I really love the chance to help individuals that need a helping hand when things are difficult for them. So many good people that start out doing the right things end up in difficult situations, like they owe more money on their house than it is currently worth.

One of the alternatives to foreclosure is called a deed-in-lieu; it’s ultimately what homeowners think about when they think about walking away from their property. In other words, they give the keys to the mortgage company and walk away. A deed-in-lieu of foreclosure can be a good alternative to foreclosure but there’s a few things I want to make sure you consider if you are contemplating a deed-in-lieu of foreclosure.

First of all, is the mortgage company forgiving your unpaid balance? A lot of homeowners believe that when they give the deed back to the lien holder, they are free and clear but this is not necessarily true. When you borrowed the money, you signed two documents, the mortgage and a promissory note, which was a promise to repay a certain amount of money. When you give back the home you are allowing them to utilize the loan on the property to satisfy the loan. However, if you bought the property for $300,000 and the mortgage company sells it for $250,000, you could be liable for that unpaid deficient balance. If you are going to do a deed-in-lieu, make sure you have someone, whether it’s an attorney, a short sale specialist, or other licensed professional, look at the document to see if it clearly says you’re not responsible for the deficient balance. If not, you could be responsible for upkeep, lawyer’s fees and other types of things and you will not know how much you owe until you get a letter after the deed-in-lieu.

Number two, if you have a HELOC or second or third mortgage and you do a deed-in-lieu on the first, this does nothing to remedy the other lien holders. You’ll start receiving collection notices for this unpaid balance. A deed-in-lieu could be a good option but you really need to evaluate all of the information and get expert help.

If you’re thinking about a deed-in-lieu of foreclosure or are searching for any of the other alternatives to foreclosure, such as a short sale, please contact me and let me provide you with the best resources and contacts to help you evaluate your situation. Our goal is to help you make the best decision for you and your family so that you can move on with your life. Please contact me, Matt Fetick, short sale specialist, at 610.427.4420 or explore my website SoldByShortSale.com.

For more information on short sales and how to avoid foreclosure, visit the Sold By Short Sale blog or you can also contact the Matt Fetick team and get started today.

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