Deed in Lieu of Foreclosure

[mandiees]

Are any lenders going through this legal process at all with any of the numbers of people being faced with foreclosure?

[Orrymain]

I'm not sure exactly what you mean. Maybe I'm just missing the obvious, but can you explain your question more.

[mandiees]

Sure, A Deed in lieu of foreclosure is an agreement in which the borrower conveys all interest in their property to the lender to satisfy a loan that is in default and avoid foreclosure proceedings.

The principal advantage to the borrower of this arrangement is that it immediately releases him/her from most or all of the personal indebtedness associated with the defaulted loan, also allowing them to avoid foreclosure and the credit hit. For the lender this deed will reduce the time and cost of a repossession, as well as avoiding any issues that may arise during foreclosure with bankruptcy.

[Orrymain]

Okay, that's essentially what my friends did, though the company never really responded. I've told that story elsewhere. They were moving out of the country but the home wouldn't sale. They ran out of time. They kept trying to talk to the mortgage company but it was difficult. She finally called and said 'hey, I'm gone. Keys are on the floor -- it's yours. Bye". I realize the mortgage company here wasn't really participating in what you're saying, but that's kinda the idea, when both sides agree.

I think it works.