What is a Deed-In-Lieu And Do I Need One? May02


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What is a Deed-In-Lieu And Do I Need One?

A deed-in-lieu can be a great option for someone in Downers Grove who is facing foreclosure. Foreclosure notices are always a shock and actually often come as a surprise because a bank can send a foreclosure notice even when mortgage payments have been made. The reasons for foreclosure notices can also include failure to pay homeowner insurance or property tax, which is why it can be incredibly important to consult with a Downers Grove attorney anytime foreclosure has been threatened. A deed-in-lieu really just means the homeowner surrenders the title, the deed, of the property. The deed is surrendered to the lender, such as the bank, in lieu of foreclosure. There are several benefits to a deed-in-lieu but they are not for every person in every situation. A Downers Grove deed-in-lieu lawyer helps clients to understand the options during foreclosure, and offers advice to clients as to the best courses of action.

One of the benefits of a deed-in-lieu is that it effectively cancels the mortgage contract, releasing you—the homeowner—from further debt or financial obligation. However, the process is not always so clean-cut. Sometimes the deed-in-lieu process becomes entangled and the bank or lender will demand that some payments still be made. If there is a difference in the currently assessed market value of the property and the debt that is owed, the lender might seek negotiations. The more complicated the situation, the more useful a Downers Grove deed-in-lieu lawyer will be in mediating the process.

Also, a deed-in-lieu requires the homeowner to collect and submit documentation for loss mitigation. The lender sometimes requires statements like proof of income or hardship, and may even require the homeowner to attempt a sale of the home first. A Downers Grove deed-in-lieu attorney will also help the homeowner decide if another option like a short sale would be preferable.