Deed-in-Lieu of Foreclosure

Helping Clients in Orlando and Throuhout Central Florida with Deed-in-Lieu of Foreclosure

Deed-in-Lieu of Foreclosure - A Way Out of Your Mortgage Problems

A Deed-in-Lieu of Foreclosure is
when you, the borrower, directly convey
or transfer a deed to the property to the
lender. In return, the lender releases you
from any further liability. This action often
comes when all efforts to keep you in the
home through loan modification or selling
the home via Short Sale have failed. Your lender may offer this option, but only if it’s the only mortgage holder on the home. If there is a second mortgage or other liens, foreclosure is the principal lender’s best option for taking possession of the home. Unlike other options financially distressed homeowners could take, Deed-in-Lieu of Foreclosure is not a laborious process of filling out paperwork and making repeated phone calls to the lender, but you may be required to submit a few financial forms showing income and expenses. Once the lender approves you for a Deed-in-Lieu of Foreclosure, it will confirm the habitability of the property. You will sign a deed prepared by the lender, conveying the property to the mortgage holder in exchange for being fully released from any further liability related to the mortgage debt. The whole process could take no more than 90 days.

 

The only remaining issue could be the tax implications on the unpaid amount of the mortgage. The IRS considers forgiven debt income and taxes it. The Mortgage Forgiveness Debt Relief Act of 2007 exempted certain homeowners from paying taxes on some unpaid mortgage debts. The Act expired on December 31, 2013. Again, you should consult an attorney or accountant about possible tax consequences of a Deed-in- Lieu of Foreclosure.

Deed-in- Lieu of Foreclosure attorney

Experience counts! Our Orlando Deed-in- Lieu of Foreclosure attorneys have helped many clients in the past and would be honored to help you to! Help is here! Call us at 407-500-0000 or fill out the online form provided on this page and we will contact you soon.