Welcome to An Informative Guide to Foreclosure
Foreclosure Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Save Your Credit history opt for a Deed in Lieu of Foreclosure
from:Being faced with a foreclosure on your home is one of the most stressful situations in life. You are worried about losing your home and your investment, and you hate the thought of a foreclosure and the effects it will have on your credit rating and your future. In certain situations, and in certain states, there is an alternate to a foreclosure, which is called a deed in lieu of foreclosure.
In order to obtain a deed in lieu of foreclosure, both the financial lender and the homeowner must agree to sign over the title of the deed to the lender. In other words, the financial institution will now own the home in question. In return the original homeowner is relieved of paying back the debt still owed on the home. The homeowner in default have no more liabilities in regards to the said house, and by procuring this agreement with the lender, the deed in lieu of foreclosure will not affect the homeowner’s credit rating like a traditional foreclosure would. The agreement to go for the deed in lieu of foreclosure must be made at the start of the foreclosure process. The deed in lieu of foreclosure is an out of court settlement.
The bank or lending institution will most often opt for a deed in lieu of foreclosure when the debt is so great that the homeowner cannot pay it. It would not be worthwhile for them to seek a deficiency judgment, which is a court order to recoup part of the outstanding debt related to the foreclosure. They normally follow through with the actual foreclosure when the debt isn’t as much as the value of the property.
The advantages of a deed in lieu of foreclosure is an economic one for the lender, by settling out of court the lender will save money on court and attorney fees. The lender will also make sure that the deed in lieu of foreclosure will not make them responsible for any mortgage liens upon the property before proceeding with this action. In other words holding the title will be a separate entity from any liens (claims for payment from contractors etc.) upon the property. At this point the bank or other lending institution will be a be able to sell the property and recover their loses. The new owners of the property would be responsible for the liens if there are any pending.
The benefit to the original homeowner is that the record of foreclosure will not be recorded on their credit history.
Foreclosure Specific links
Foreclosure News
Foreclosure Settlement Will Settle Nothing
NEW YORK (TheStreet) -- A foreclosure settlement between the banks and the 50 states Monday, if it does finally happen, will likely not have the positive outcomes that investors have been hoping for. Details of the deal emerging from recent press reports suggests that the states, while requiring banks to address their foreclosure procedures and reduce principal on mortgages, might not grant them ...
Read more...Foreclosure filings down 25 percent in Colorado in 2011
New foreclosure filings were down 25 percent in Colorado during 2011, dropping to the lowest annual total reported since 2006, according to the Colorado Division of Housing.
Read more...Loan Modification Short Sale and Foreclosure Tax Consequences
SAN DIEGO, Feb. 3, 2012 /PRNewswire/ -- Indicating most homeowners awaiting loan modification approval and contemplating short sale or foreclosure are not aware of all consequences with regard to their ...
Read more...N.Y. foreclosure lawsuit could slow home seizures
Bankers struggling to deal with faulty foreclosure paperwork just got hit with another major headache. New York State Attorney General Eric Schneiderman, recently tapped by President Obama to head a new task force to investigate mortgage fraud, sued three major U.S.
Read more...New York sues Reston firm over foreclosure documents
New York Attorney General Eric Schneiderman sued a handful of the nation’s largest banks Friday, claiming they deceived homeowners and court officials by filing flawed and fraudulent foreclosure documents through a popular electronic mortgage registry. Read full article >>
Read more...QUICK TAKE: Mortgage Lenders Sued for Deceptive Foreclosure Practices
New York Attorney General Eric Schneiderman announced on Friday he filed a lawsuit against Bank of America, JPMorgan Chase and Wells Fargo accusing them of engaging in “deceptive and fraudulent foreclosure filings.”
Read more...Foreclosure Deal With Banks Said to Ensure Same Terms for All 50 States
State attorneys general and lenders including Bank of America Corp. and JPMorgan Chase & Co. agreed to ensure that states signing a nationwide accord on foreclosures will be entitled to improved terms won later by states that opt out, two people familiar with the matter said.
Read more...