Deed In Lieu Of Foreclosure

by Cindy from USA

Ask Kate About Deed In Lieu Of Foreclosure: Hi Kate, My house is up for sale because I have to move by this summer. What if my house doesn't sell by the time I have to move? Everyone is giving me advice but I don't want to rent it.



To rent the house is not an option! What do I do if I just want to call the mortgage company and tell them they can have it back? What would happen exactly? Cindy

Kate Answers: Deed In Lieu Of Foreclosuree

Ask Kate at Get-Your-Best-Mortgage-Rate.com
Dear Cindy, When homeowners contact their banks to voluntarily turn over the ownership of houses, it is commonly called Deed In Lieu Of Foreclosure.

However as cooperative as it seems, homeowners' credit histories are still adversely affected for years.

Please be advised with Deed In Lieu Of Foreclosure, you could also suffer tax consequences. So I strongly advise seeking counsel before you choose this route.

Foreclosure vs. Deed In Lieu Of Foreclosure

Foreclosure is different from Deed In Lieu Of Foreclosure. Please understand, I am advocating neither, only explaining the difference of action taken on the part of homeowners.

In the case of foreclosure, when homeowners stop making monthly house payments, banks will make contact. In fact, after missing only three consecutive payments, the process of foreclosure is initiated.

But as odd as it sounds, banks are behind schedule lately. The lending institutions are under a deluge of paperwork due to the onslaught of foreclosures. So time frames may vary.

Foreclosure should be a last resort. It is damaging to credit history and as with Deed In Lieu Of Foreclosure, could have tax consequences as well.

Be aware the state in which your house is located may have different governing laws in place to protect the rights of both homeowners and banks in the case of foreclosure and Deed In Lieu Of Foreclosure.

Mortgage Loan Modification

Please do not think I am experiencing poor reading habits when I ask this. I truly did read that you do not want to rent the house.

Have you considered a mortgage loan modification to reduce the monthly house payments equal to the amount you could charge for rent? (Assuming your payment is higher than the going rents in your area.)

That way the house payment would be more affordable and you could preserve your credit.

I mention this because losing a home can be rough on a homeowner's emotional well-being. So even though you may wish to be relieved of the obligation, I encourage you to continue investigating options to save your home. I welcome more questions from you.

Best Wishes,

Ask Kate




PS Remember, if you still have questions regarding Deed In Lieu Of Foreclosure, write me at Ask Kate where every question is a good question.

More Help to Save Your Home

Special Edition Making Home Affordable - 13 options for homeowners struggling with unaffordable house payments.

Loan Modification Ask and Answer - Answers to loan modification, Home Affordable Programs, HARP, and HAMP questions.

Can I do a Mortgage Loan Modification myself? The answer is yes, but...

Don't give up. With a little knowledge, you can Stop Mortgage Foreclosure.

Foreclosure Help - Act now if you think you are going to be late on a mortgage payment.

Help for locating your lender to Stop Foreclosure Now.

By understanding your Adjustable Rate Mortgage, you can anticipate and plan.

When promises to Sell Your House seem too good to be true, remember this.

A limited offer, Mortgage Debt Relief provided help for homeowners subject to additional income taxes.

How to explain to your lender that you are trying to Prevent Foreclosure.

The first step to stopping Foreclosure is understanding its impact on your life.

Stop Foreclosure. Learn from Donald Trump about negotiating a better deal.

Subprime Mortgage Loans fulfilled an important role in America.

Every homeowner with a Subprime Mortgage needs a long term plan.

Subprime Mortgages - Learn how to transition to traditional mortgage financing.



Home from Deed In Lieu Of Foreclosure to Get Your Best Mortgage Rate

Help Spread The Word

Please come back and visit often. I depend on word of mouth! So please help me spread the word by sharing Deed In Lieu Of Foreclosure with your friends using these easy social bookmarking buttons.


Click here to add a comment.

You can also ask Kate about your mortgage at How to Improve Your Credit Rating with Amazing Success.

Recent Articles

  1. Kate's Mortgage Rate Report August 11: Rates Bouncing Like a Ping Pong Ball

    Aug 11, 16 10:49 AM

    Kate's mortgage rate report for the week ending August 11, 2016: Rates Bouncing Like a Ping Pong Ball
    Mortgage interest rates have been bouncing like a ping pong ball: After last Friday's strong job report began pushing up mortgage rates, the market is now hinting at a reversal, with the 30-year hover…

    Read more

  2. Ask Kate how to avoid unauthorized mortgage rate extension fees

    Aug 11, 16 10:18 AM

    Ask Kate how to avoid unauthorized mortgage rate extension fees
    Ask Kate how to avoid unauthorized mortgage rate extension fees:

    After locking in her rate, the bank sent a Texan homeowner, Laura, notification of several thousand in fees that she must pay in order…

    Read more