What You Need To Know About Deed In Lieu Of Foreclosure…

There are quite a few homeowners that are unfortunately mis-informed about deed-in-lieu of foreclosure. The deed-in-lieu of foreclosure means exactly how it sounds. The homeowner gives the deed to the bank just in time to save the crushing blow of a foreclosure. Right?, Wrong…and let me tell you why.

We are working with a very wealthy client that is in foreclosure on 2 of their high end homes. They decided to not do a foreclosure and called their bank. They offered to give them the deed to their homes. The bank would not accept the deeds. The homeowners were shocked and stunned. They couldn’t understand why the bank would not willingly take the deeds instead of going through the expensive foreclosure process.

The bank wanted the homeowners to find a buyer for their homes. In other words, Short Sale. The bank did not want any part of the debt on these 2 homes. The homeowner then contacted us to handle the short sale. They have successfully completed a short sale on their investment property. The other home is their primary residence which will be sold by the middle of next month.

Let me add more information to why banks are not taking deed-in-lieu. They want a deed free and clear of all liens. An example of what some common liens are, IRS for unpaid taxes, property taxes, unpaid HOA dues, and contractors lien. This is why they don’t do deed-in-lieu of foreclosure. They want a clear deed.

This is current information gained from a “HAFA” certification I went to last week. Doing my best to keep you informed with current bank information.

If you are reading this and know of someone that may need our help please send this to them, or call 310-737-8173 for a confiential call.

We help people move gracefully out of uncomfortable financial situations with their homes.

Kristine 🙂

Comments

  1. Great Blog post. I am going to bookmark and read more often. I love the Blog template

    • Yeah! Thanks for the support. My style is education through current direct experience and professionally recognized designations. Kristine 🙂

  2. Thanks for posting the article, was certainly a great read!

  3. Hello. I was reading someone elses blog and saw you on their blogroll. Would you be interested in exchanging blog roll links? If so, feel free to email me.

    Thanks.

    • Hi, I just looked at your site and did a comment. I’m really into education through experience and certifications. What would you say your style or focus is?

      Also, where did you see my site listed? who’s blog roll? 🙂

  4. Pretty nice post. I just stumbled upon your blog and wanted to say that I have really enjoyed browsing your blog posts. In any case I’ll be subscribing to your feed and I hope you write again soon!

  5. Great information! I’ve been looking for something like this for a while now. Thanks!

  6. Keep up the good work, I like your writing.

  7. A home is just a place to keep your stuff while you go out and get more stuff.

  8. If someone is 15 months behind in their mortgage would the bank keep paying their taxes? How would you know if they’re paying it?

    • Hi Kelly, This is a great question. The bank will pay it only if the homeowner is actively working with them. On our short sale in Venice the bank paid the back taxes twice so we could close escrow. We needed a clean title to transfer to the new buyer. Thanks, Kristine 😉

  9. it was very interesting to read westsidehomesolutions.com
    I want to quote your post in my blog. It can?
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  10. nice post. thanks.

  11. I would like to exchange links with your site westsidehomesolutions.com
    Is this possible?

  12. great information you write it very clean. I am very lucky to get this tips from you.

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  14. Hi Cheryl, thanks for the Tweet. 🙂 Kristine

  15. Hi Cheryl,

    Thanks for the reTweet! Kristine 🙂

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