Deed-in-Lieu of Foreclosure

Deed-in-Lieu of Foreclosure is, in effect, giving your property to your lender in exchange for cancellation of your mortgage.  It is sometimes also referred to as "Cash for Keys". 

In a recent policy statement (MORTGAGEE LETTER 2002-13) HUD authorized lenders to pay FHA borrowers up to $2000.00 for a Deed-in-Lieu of foreclosure.on the condition that the occupant peacefully vacates a property for which the mortgage has been foreclosed and the property is left broom clean. Some conventional loan lenders are offering similar incentives to homeowners.

If you are approved for a Deed-in-Lieu, you will deed the property over to your lender in exchange for a release from the obligation to repay your mortgage.  Your lender may also waive their deficiency judgment rights.  If not, you could still owe your lender money after they have "fixed up" and sold your property.

There may be tax consequences of a Deed-in-Lieu transaction.  A qualified tax professional should be consulted to determine the impact this may have in your case.

Lenders will consider accepting a Deed-in-Lieu transaction when other options are not possible.  Generally, lenders expect the following conditions to be met in order to consider offering a homeowner a Deed-in- Lieu solution:

• You have experienced a long term financial hardship that has not been resolved.
• Your house has been on the market (at fair market value) for at least 90 days. 
• There are no additional claims or liens (other than the first mortgage) against the property.
• The house is broom clean.

How can AMS help?

Too many banks use a “one size fits all” approach with homeowners in foreclosure. Your situation is unique. You deserve to get a fair and personalized settlement from your lender. We stop foreclosure by taking the time to listen to your concerns, assess your financial needs and then negotiate a mortgage solution that you can live with.

We get your bank to pay attention to your needs because they know and trust us. We have successfully rescued many families from the devastation of foreclosure. That kind of experience and track record in the industry gives us credibility with your lender.  Our integrity and professionalism have earned us a reputation that allows us to be heard when no one else can get through the red tape.

Over the years we have developed solid working relationships with key decision makers at most banks and in the federal regulatory agencies such as HUD and the Veteran’s Administration.

We will use our experience and connections to your advantage. Please don’t delay. Act today while hope remains. If you think a Deed in Lieu may be the solution you need, apply now for a free consultation to discuss how we can help you stop foreclosure and reduce the impact on your credit.  Or call (800) 580-5351 to speak with a foreclosure prevention professional immediately.  Lenders are more receptive to a Deed-in-Lieu proposal when still in the early phase of a foreclosure proceeding.  If you are experiencing foreclosure now, you should act fast to protect yourself!