Stop Foreclosure - Using Deed in Lieu to Avoid Foreclosure

If you have exhausted every other options, such as forbearance, short sale,  that can be used to stop home foreclosure, you can do a deed in lieu to stop home foreclosure. Deed in lieu is not good option than forbearance, and short sale. But it is better option than home foreclosure. Here I will discuss what is deed in lieu and its advantages and disadvantages to the borrower (mortgagor).

Then, What is Deed in Lieu?

A deed in lieu of foreclosure is a deed instrument in which a borrower (i.e., the mortgagor) conveys all interest in a real property to the lender (i.e., the mortgagee) to satisfy a loan that is in default and avoid foreclosure proceedings. In a simple word, that is, you give back the ownership to the lender in exchange for the lender’s forgiveness of your debt associated with the mortgage loan. Read more

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