Deed in Lieu of Foreclosure for Daytona
When you are facing a foreclosure, you may not know what you should do. Do you respond to the complaint? Do you move out of the home? Can you transfer the property to the mortgage company? Are you allowed to sell the home before the foreclosure sale is complete? There are so many questions, so where do you turn for answers.
Our Daytona foreclosure defense lawyers can answer your questions and help you determine the best course of action for your family. It can be frightening to deal with a foreclosure, but having a trusted, experienced team of legal professionals on your side can make the process less stressful.
What is a Deed in Lieu of Foreclosure?
You may have heard or read about a deed in lieu of foreclosure. The mortgage company may have already approached you with this option for resolving the foreclosure lawsuit.
A deed in lieu of foreclosure is a legal document that transfers ownership of the property to the mortgage company. In consideration for the transfer of property, the mortgage company abandons the foreclosure action. One of the benefits for the homeowner is that the deed immediately releases the homeowner from all liability for the loan and the home. The benefit for the mortgage company is that it does not have to spend as much money to recover the property through a foreclosure action (i.e. attorney fees, court costs, etc.).
However, a deed in lieu of foreclosure is not always the best option for every homeowner. Before you agree to a deed in lieu of foreclosure, you should consult with our Daytona foreclosure defense attorney to discuss all options for resolving the foreclosure.
Am I a Good Candidate for a Deed in Lieu of Foreclosure?
There are several options available for resolving a foreclosure. Determining which option is best for you depends on your circumstances. For example, if you want to keep your home, you may qualify for a loan modification. However, a loan modification can be a long process. If the home is close to a foreclosure sale, a loan modification may not be a viable option.
A short sale may be another option if you have a buyer who wants to purchase the home. However, a short sale is also a long process, so that may not be an option if the foreclosure action is close to being complete. The deed in lieu may be the best option if the mortgage company agrees to accept the deed in lieu of foreclosure.
Does a Deed in Lieu Satisfy the Debt Completely?
Because you can negotiate the terms of a deed in lieu as you do a short sale, loan modification, or forbearance, you want a Daytona foreclosure defense attorney to represent you in the negotiations. You want to ensure that the deed in lieu of foreclosure forgives the entire debt. If the document does not specify that the lender cannot seek a deficiency judgment, you could face a personal judgment for thousands of dollars if the home does not sell for enough to pay the debt in full to the mortgage company.
Another concern is the tax consequences that you could face if the lender forgives the debt. In some cases, a property owner may be required to report the debt as “income” on their tax return. Your foreclosure defense attorney in Daytona can review the facts in your case to determine if there is a risk for tax consequences of the deed in lieu of foreclosure.
Lastly, some mortgage companies will pay a small amount to the homeowner if the homeowner agrees to vacate the home quickly or clean the home before the homeowner leaves. Your attorney can discuss terms with the mortgage company. You may only receive a few hundred dollars, but that amount could help with moving expenses. The earlier you begin negotiating a deed in lieu of foreclosure with the mortgage lender, the better chance you have of receiving terms that are more favorable for you.
Call a Daytona Real Estate Lawyer for Foreclosure Defense Help
Our Florida foreclosure defense lawyers are willing to fight for you to keep your home if that is what you desire. We explore every available option to help you keep your home. Because we are also experienced bankruptcy attorneys, we can also explore a Chapter 13 bankruptcy to stop foreclosure so that you can keep your home.
If you choose to surrender the home voluntarily, we will explore deed in lieu of foreclosure options with the mortgage lender. We can also explore a short sale with the lender to avoid foreclosure.