Financing in Brooklyn>Question Details

Crags, Home Buyer in Brooklyn, NY

How do you get a "Deed-in-Lieu" of foreclosure?

Asked by Crags, Brooklyn, NY Wed Feb 27, 2013

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6
Rodney Wright’s answer
Deed in Lieu is the process of turning over your house title to the bank. This is not always in the best interest of the owner long term. The bank has to agree not to come after you at a later date for any DEFICIENCY when the property is resold, you may lose out on receiving up to $20,000, there might be tax liability and other implications which may your affect future decision to purchase a home.

If you would like additional information or assistance contact me anytime @ 914-299-0420.
0 votes Thank Flag Link Sun Mar 24, 2013
BEST ANSWER
A "Deed in Lieu of Forclosure" is a term used when the current owner who is in forclosure, signs the deed over to the Bank instead of going through the whole forclosure process. Not many Banks will accept this, because it does not "clean up" the title.
But depending on why you are asking this question, it is a question for an Attorney.
Kathryn Lilly, Broker
Realty on the Greene, LLC
718-858-7600
0 votes Thank Flag Link Wed Feb 27, 2013
Depending on the bank, it may require that you list the house for a period of time (assuming a short sale) prior to taking the deed.

Please speak with your bank's modification or liquidation department to discuss your options.
0 votes Thank Flag Link Tue Mar 5, 2013
Crags,

A Deed in Lieu is merely the turning over the deed of your house back to the bank.

A better choice for you credit wise would be to put the property on the market as a "short sale." It is a little less detrimental.

Give us a call if we can be of service to you.

gail@GladstoneGroupRealty.com
718-928-9580
0 votes Thank Flag Link Wed Feb 27, 2013
Consult with an attorney who specializes in real estate, he/she can better advise...
0 votes Thank Flag Link Wed Feb 27, 2013
Negotiate with the owner and then get a Attorney to complete it. Good luck.
0 votes Thank Flag Link Wed Feb 27, 2013
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