Stop Foreclosure with a Deed in Lieu of Foreclosure
If you are amidst a personal financial hardship and need to stop foreclosure you can rest assures that you are not alone. The current housing crisis has produced millions upon millions of foreclosures.
There are many foreclosure alternatives that allow homeowners to stop foreclosure.
This debt help article explains the step by step process of how to get a deed in lieu of foreclosure agreement from your lender that will stop foreclosure, forgive the excess mortgage principle free and clear, as well as the ability to walk away from your home and mortgage with no further obligations to your lender.
How to obtain Deed in Lieu
Make Sure You Want a Deed in Lieu of Foreclosure
Like I said previously there are many foreclosure alternatives available for homeowners. If you want to keep your home then you are going to want to explore some other option that is available to you such as a loan modification.
Exhaust Other Options
The lender is going to require that you have exhausted other more desirable options before they give the go ahead for a deed in lieu of foreclosure agreement.
Make sure you have exhausted the following options…
Home Sale
Short Sale
Refinance
Loan Modification
Document that other Options Have Been Exhausted
Be sure that you maintain documents or proof of some sort that you have attempted or have looked into all these options. Also provide a brief description of why these foreclosure alternatives just will not work.
Request a Deed in Lieu from Your Lender
Do this by mail as well as by phone.
Submit Financial Package and Hardship Letter to Lender
They will eventually ask for a financial package and hardship letter. Both of these are very important aspects of the approval process for a deed in lieu of foreclosure.
I recommend using a hardship letter template as an example before writing yours.
Await Approval and Deed in Lieu Contract Agreement
Look for approval letter and contract in the mail.
Sign and Complete Deed in Lieu of Foreclosure Agreement, then Return to Lender.
Take a look at it. Complete and sign. Then submit back to your lender.
Walk Away
Move away from your home and start a new life dedicated to financial freedom and smart debt management.
Final Thoughts on Deed in Lieu
If you want to keep your home there are many resources that and programs that can help you stop foreclosure and retain homeownership.
Many homeowners need to simply lower their monthly mortgage payment to make home affordable. There are many homeowner help outlets that provide this opportunity.
Tags: Deed, Foreclosure, Lieu, Stop