Avoid The Cost Of Foreclosure Through A Deed In Lieu

If you are facing foreclosure, a potential alternative is a deed in lieu of foreclosure, or a lieu deed. Foreclosure is a lengthy and expensive prospect for the bank. A foreclosure is devastating to a homeowner's credit score and ability to buy a home in the future when circumstances improve.

A deed in lieu of foreclosure can save time, money and financial prospects for all involved.

Get Out From Your Mortgage Obligations

However, it is important to note that a deed in lieu can have significant ramifications. By agreeing to a deed in lieu of foreclosure, you are agreeing to leave the house. In addition, a deed in lieu will impact your credit score, but less so than a foreclosure.

Importantly, in New Jersey and New York, banks are allowed to go after the unpaid balance of the mortgage after the sale of the home by filing a "deficiency judgment." You can, however, have the bank agree to waive this right — talk to us about this process by calling 732-639-1952 or 732-895-0109.

The attorneys at Weber, Fabiyan & Associates, LLC, have helped thousands of homeowners pursue alternatives to foreclosure throughout New Jersey and New York. We can help you understand your options and ensure that you will walk away free and clear of mortgage obligations to the lender.

Short Sale Or Deed In Lieu?

A deed in lieu of foreclosure is unlike a short sale in that you are directly conveying the property to the bank in exchange for being released from your mortgage obligation. There is no sale to a third party. Instead, it is a direct transfer of your property to the bank. The best option for you will depend on your situation and the lender involved.

Lieu Deeds Can Be Complex

Like many foreclosure alternatives, the process for a deed in lieu can be complicated. The bank or mortgage lender will want to know about any outstanding liens on the property or second mortgages. As the bank will be taking ownership of the property, they will want to have clear title, meaning you will have to prove clean ownership.

Our lawyers will work directly with you from application to the deed transfer. We are always available by phone, text or remotely, including outside of normal business hours.

Confused About Your Best Options? Get A Free Case Evaluation.

If you have questions about the best path forward, contact our Howell, New Jersey, office at 732-639-1952, 732-895-0109 or reach us online.

We are able to meet remotely if you cannot make it into the office, and we make accommodations for your schedule as needed.