{"id":5021,"date":"2011-11-30T09:00:33","date_gmt":"2011-11-30T09:00:33","guid":{"rendered":"http:\/\/www.duncanlawonline.com\/?p=5021"},"modified":"2016-10-10T10:57:56","modified_gmt":"2016-10-10T14:57:56","slug":"what-is-a-deed-in-lieu-of-foreclosure","status":"publish","type":"post","link":"https:\/\/www.duncanlawonline.com\/staging\/8350\/what-is-a-deed-in-lieu-of-foreclosure\/","title":{"rendered":"What Is A Deed In Lieu of Foreclosure?"},"content":{"rendered":"<p>[av_section min_height=&#8221; min_height_px=&#8217;500px&#8217; padding=&#8217;default&#8217; shadow=&#8217;no-shadow&#8217; bottom_border=&#8217;no-border-styling&#8217; id=&#8221; color=&#8217;main_color&#8217; custom_bg=&#8217;#d7d8ca&#8217; src=&#8221; attachment=&#8221; attachment_size=&#8221; attach=&#8217;scroll&#8217; position=&#8217;top left&#8217; repeat=&#8217;no-repeat&#8217; video=&#8221; video_ratio=&#8217;16:9&#8242; overlay_opacity=&#8217;0.5&#8242; overlay_color=&#8221; overlay_pattern=&#8221; overlay_custom_pattern=&#8221;]<\/p>\n<p>[av_heading heading=&#8217;What Is A Deed In Lieu of Foreclosure?&#8217; tag=&#8217;h1&#8242; style=&#8221; size=&#8221; subheading_active=&#8221; subheading_size=&#8217;15&#8217; padding=&#8217;10&#8217; color=&#8221; custom_font=&#8221;][\/av_heading]<\/p>\n<p>[\/av_section][av_video src=&#8217;http:\/\/www.youtube.com\/watch?v=0mSD0EuXaBE&amp;feature=youtu.be&#8217; format=&#8217;16-9&#8242; width=&#8217;16&#8217; height=&#8217;9&#8242;]<\/p>\n<p>[av_textblock size=&#8221; font_color=&#8221; color=&#8221;]<br \/>\nFor homeowners that have fallen behind or \u201cdefaulted\u201d on their mortgage loan and have decided they do not want to keep the home, a deed in lieu of foreclosure may be an option for them.\u00a0 In the simplest of terms, the deed in lieu allows the homeowners to voluntarily transfer the property from the homeowners name to the mortgage company\u2019s name without going through the prolonged and for the mortgage company costly foreclosure process.\u00a0 This process also satisfies the debt the homeowner owes to the mortgage company on the loan.\u00a0 Although the loan is satisfied through this process, the homeowners\u2019 credit will still reflect that the loan was in default but satisfied by a deed in lieu.\u00a0 In other words, there will be a negative impact on the homeowners\u2019 credit from executing the deed in lieu of foreclosure, but it may not be as detrimental as a foreclosure.<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignleft size-medium wp-image-6732\" src=\"https:\/\/www.duncanlawonline.com\/wp-content\/uploads\/2015\/01\/foreclosure-300x200.jpg\" alt=\"House in Foreclosure\" width=\"300\" height=\"200\" \/>There are several things the mortgage company will consider before deciding whether they will agree to a deed in lieu of foreclosure on the property.\u00a0 These include:<\/p>\n<p>Are there any other mortgage loans (second, third, or Home Equity<\/p>\n<p>Line of Credit (HELOC)) on the property?<\/p>\n<p>Are there any homeowners\u2019 association liens on the property?<\/p>\n<p>Are there any judgment liens on the property?<\/p>\n<p>Are there any other blemishes on the title?<\/p>\n<p>If there are any of these issues, the mortgage company will most likely not agree to the deed in lieu of foreclosure and will proceed with the standard foreclosure process.\u00a0 The mortgage company cannot eliminate the other liens on the property through the deed in lieu process.\u00a0 As a result, if you have more than one mortgage loan or other liens on your property, you may want to consider other options including a short-sale of the property or <a title=\"North Carolina Bankruptcy Lawyers\" href=\"https:\/\/www.duncanlawonline.com\/bankruptcy\/\" target=\"_blank\">filing bankruptcy<\/a>.\u00a0 Each of these options has their own risks and benefits and is discussed in other blogs.\u00a0 Most deed in lieu of foreclosure paperwork is drafted by the mortgage company\u2019s attorney, so it is recommended that the homeowners seek the advice of an attorney, usually someone practicing real estate law, before signing the deed in lieu documents.<br \/>\n[\/av_textblock]<\/p>\n<p>[av_hr class=&#8217;default&#8217; height=&#8217;50&#8217; shadow=&#8217;no-shadow&#8217; position=&#8217;center&#8217; custom_border=&#8217;av-border-thin&#8217; custom_width=&#8217;50px&#8217; custom_border_color=&#8221; custom_margin_top=&#8217;30px&#8217; custom_margin_bottom=&#8217;30px&#8217; icon_select=&#8217;yes&#8217; custom_icon_color=&#8221; icon=&#8217;ue808&#8242;]<\/p>\n<p>[av_social_share title=&#8217;Share this entry&#8217; style=&#8221; buttons=&#8221; share_facebook=&#8221; share_twitter=&#8221; share_pinterest=&#8221; share_gplus=&#8221; share_reddit=&#8221; share_linkedin=&#8221; share_tumblr=&#8221; share_vk=&#8221; share_mail=&#8221;][\/av_social_share]<\/p>\n<p>[av_comments_list]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[av_section min_height=&#8221; min_height_px=&#8217;500px&#8217; padding=&#8217;default&#8217; shadow=&#8217;no-shadow&#8217; bottom_border=&#8217;no-border-styling&#8217; id=&#8221; color=&#8217;main_color&#8217; custom_bg=&#8217;#d7d8ca&#8217; src=&#8221; attachment=&#8221; attachment_size=&#8221; attach=&#8217;scroll&#8217; position=&#8217;top left&#8217; repeat=&#8217;no-repeat&#8217; video=&#8221; video_ratio=&#8217;16:9&#8242; overlay_opacity=&#8217;0.5&#8242; overlay_color=&#8221; overlay_pattern=&#8221; overlay_custom_pattern=&#8221;] [av_heading heading=&#8217;What Is A Deed In Lieu of Foreclosure?&#8217; tag=&#8217;h1&#8242; style=&#8221; size=&#8221; subheading_active=&#8221; subheading_size=&#8217;15&#8217; padding=&#8217;10&#8217; color=&#8221; custom_font=&#8221;][\/av_heading] [\/av_section][av_video src=&#8217;http:\/\/www.youtube.com\/watch?v=0mSD0EuXaBE&amp;feature=youtu.be&#8217; format=&#8217;16-9&#8242; width=&#8217;16&#8217; height=&#8217;9&#8242;] [av_textblock size=&#8221; font_color=&#8221; color=&#8221;] For homeowners that have fallen behind or &#8230; <a title=\"What Is A Deed In Lieu of Foreclosure?\" class=\"read-more\" href=\"https:\/\/www.duncanlawonline.com\/staging\/8350\/what-is-a-deed-in-lieu-of-foreclosure\/\" aria-label=\"Read more about What Is A Deed In Lieu of Foreclosure?\">Read more<\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"nf_dc_page":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[6,63,28,7,8,10,40,30],"tags":[],"class_list":["post-5021","post","type-post","status-publish","format-video","hentry","category-bankruptcy","category-bankruptcy-alternatives","category-bankruptcy-video","category-chapter-13","category-chapter-7-2","category-duncan-law-blog","category-foreclosure","category-video","post_format-post-format-video"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v27.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What Is A Deed In Lieu of Foreclosure?<\/title>\n<meta name=\"description\" content=\"Read more to find out what a deed in lieu of foreclosure is. 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