Are you considering pre-foreclosure options?
When you are a homeowner who is upside down in a bad mortgage and have decided that you need to walk away from the increasingly burdensome debt, there are several options available to you including foreclosure (doing nothing), bankruptcy, short sale and deed in lieu of foreclosure. The last of these options may be the best avenue in your case - and for certain, doing nothing is always the worst thing to do. For an examination of your case and immediate relief to your worries and concerns, contact a Houston bankruptcy lawyer for help.
What exactly is a deed in lieu of foreclosure? The most basic definition equates it with a voluntary repossession. You will sign over the deed or title to your property, and in return the lender agrees to cancel your mortgage. This process is a consensual and preemptive action, rather than waiting upon the bank to take your property back through legal actions. It will require a great deal of negotiation and jumping through hoops, and it is always helpful to have an experienced lawyer on your side. A bank will deny a deed in lieu more often than they will accept it. They will also generally require that:
- You have suffered a hardship such as sickness, unemployment or divorce;
- The property in question is your primary residence;
- You must have exhausted all other options and resources;
- The property must have been on the market for at least 3-6 months;
- No liens exist on the property.
You may also be subject to other negative consequences such as a deficiency judgment or tax repercussions, so it is wise to be well-informed before engaging in this option.
The deed in lieu process can be difficult, time-consuming and complex. With the help of Stockton Law Offices, you can ensure that this is indeed the best option for you and can work to protect your rights and interests when drawing up and agreeing to the banks requirements. Our firm has years of experience and will work diligently on your behalf.