Under certain circumstances, lenders may consider accepting the property by a deed from the borrower. The Deed In-Lieu of Foreclosure permits the lender to obtain ownership and possession of the property quickly and at a lower cost than obtaining the same property through foreclosure. The borrower is able to avoid a foreclosure judgment.
Considerations for Deed In-Lieu of Foreclosure:
- The terms of the Note and Mortgage, and other applicable loan documents
- The equity ratios of the property
- The status of title
- The borrowers current financial situation