Phone: (407) 476-
Orlando Foreclosure Attorney
Orlando, Florida 32801
Foreclosure Attorney Michael Stites
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Orlando FL, 32801
All initial consultations are completely free and we can contact the same or following business day.
The option where you agree to give your home to the lender as long as they agree to cancel out the loan is known as a “deed in lieu of foreclosure”. Unlike a short sale, this transfers the responsibility of selling the home to the lender. This is something that will have to be negotiated with, and is ultimately up to the lender.
Remember lenders are not real estate brokers. They prefer to work with cash so convincing them to take the home is usually not easy.
The advantage to a deed in lieu of foreclosure is you will not have to go through the process of trying to sell the home yourself. You will also no longer have a mortgage to pay.
The disadvantage to a deed in lieu of foreclosure is if the bank auctions off the home for less than what you owed they can sue you for the deficiency. That is why it is important to negotiate a deficiency waiver prior to performing the deed in lieu.
If you have equity in the home, as in, if the home is worth more than what you owe, a deed in lieu is not a good idea. It would benefit you to sell the home yourself.
Key Foreclosure Terms:
Deed in Lieu of Foreclosure -