How do you get a Deed-in-Lieu of Foreclosure?

Asked by Trulia Brooklyn, Brooklyn, NY Fri Jan 11, 2013

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Mitchell Fel…, Agent, Brooklyn, NY
Fri Jan 11, 2013
BEST ANSWER
If you are having trouble paying your mortgage or if your mortgage banker is threatening to foreclose on you and you do not want to fight it... you can arrange for the bank to simply take over the property and hand the deed and keys over to them. This is called a deed-in-lieu of foreclosure. Basically you would be washing your hands of the property. Depending on the value of the property and how much you owe, you can try to negotiate with the bank to see if they will pay you for the keys based on the fact that you are not making them go through a lengthly and costly foreclosure process (I will say this is rare depending on who holds the mortgage). You may want an attorney to help you out as well to make sure you have no further obligation to the bank. When you hand them the deed and keys make sure that the mortgage holder waives any and all money due on the mortgage. If I can be of further assistance please let me know. Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes
Michael Cheng, Agent, San Jose, CA
Fri Jan 11, 2013
Trulia, your question is making less sense than usual. You can file for a deed-in-lieu with your lender. It's not anything you can get.
Web Reference:  http://www.archershomes.com
3 votes
Robbie Vaughn, Agent, Mineola, NY
Sun Jan 13, 2013
Most lenders will require the homeowner to attempt a short sale before they will even consider a Deed-in-Lieu. Additionally, I have never seen a Deed-in-Lieu accepted on a property with multiple lenders.

At this point in time, I don't see a Deed-in-Lieu as a legitimate first option for distressed homeowners.
Web Reference:  http://www.bverealty.com
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