Foreclosure FAQ

What is a deed in lieu of foreclosure?

Related Ads

Need Professional Help? Talk to a Lawyer

Enter Your Zip Code to Connect with a Lawyer Serving Your Area

searchbox small

Questions:

Answer:

What is a deed in lieu of foreclosure?

With a deed in lieu of foreclosure, you give your home to the lender (the "deed"), and in exchange, the lender cancels the loan rather than foreclosing on the property. In most states, a lender is allowed to sue you to recover any remaining deficiency--the difference between what the lender can sell the house for and what you owed on the mortgage. Before you agree to a deed in lieu of foreclosure, make sure that the lender agrees, in writing, to forgive any deficiency that exists. Deeds in lieu of foreclosure are not possible if there is a second mortgage, unless the same lender owns both loans. For more information, see Nolo's article Short Sales and Deeds in Lieu of Foreclosure.

Talk to a Lawyer

Start here to find foreclosure lawyers near you.

HOW IT WORKS
how it works 1
Briefly tell us about your case
how it works 2
Provide your contact information
how it works 1
Connect with local attorneys
Related Ads
LA-NOLO1:CM1.2.1.1.20150623.32264+