Home > Foreclosure > Protect Your Perfect Credit History By Using Deed In Lieu Foreclosure

Protect Your Perfect Credit History By Using Deed In Lieu Foreclosure

October 2nd, 2010

Many households have suffered from the recent economic turmoil. Some families have lost their jobs and in turn also lost their homes due to foreclosure. As if losing your home is not bad enough, the credit rating of the homeowner is ruined with the stigma of foreclosure. There is a possibility of using deed in lieu foreclosure proceedings to help salvage your credit score.

Deed in lieu is where the homeowner will hand the deed to the home over to the mortgage holder. They then walk away from the home and the mortgage loan. The lender can then put the property on the market to recoup their investment.

When dealing with a deed in lieu situation, it is of vital importance that you get everything in writing. If a lender does not say in writing that they will forgive any short sale that may occur, then you could be holding the bag after all. A short sale is when the lender sells the home for less than what is owed on the mortgage. They then turn to you for the remainder of the cash.

In the majority of cases, the lender will insist that you take the responsibility of selling your home even if you have entered into a deed in lieu arrangement. Normally mortgage lender does not wish to get in the business of selling houses. They are only interested in financing the home, not selling it.

A deed in lieu arrangement will be very difficult or even impossible if you have more than one mortgage on your home. In cases such as this, there is usually never enough after the home sells to cover both mortgages. Tax liens and home equity loans can also prevent a homeowner from using this tactic.

In the end it is up to the mortgage holder as to whether they will be willing to allow you to use deed in lieu foreclosure as an option. Hopefully you have a good relationship history with your lender and they will work with you to create a positive outcome for both parties.

Looking for comprehensive information on how deed in lieu hollywood florida foreclosures can help save your credit score ? Get the low down now in our fab hollywood florida homes for sale overview.

Incoming search terms for the article:

Tags: , , , , , , , , , , , , , ,
Comments are closed.