In part two of this five part series “5 steps to preventing foreclosure” we’re going to cover the second
option on the list: Deed-In-Lieu and learn how this second option can save any Orange County
homeowner from going through the painful foreclosure process.
What Exactly Is A Deed-In-Lieu?
With a Deed-In-Lieu, the homeowner will transfer complete ownership of their property, including the title
and all property that may come with it, to the mortgage owner or lender. What the homeowner receives in
return is a complete release from their payments and mortgage loan.
To qualify for a Deed-In-Lieu the homeowner must meet the following criteria:
- Be ineligible for refinancing their home or modifying their existing mortgage
- Behind on their mortgage payments
- Dealing with long-term financial hardship
- Be living in an underwater home
- Unable to sell their home
- No longer able to afford living in their home
The Homeowner Has rights
During the Deed-In-Lieu process, the homeowner does have rights because, banks will
not want the home to go through foreclosure since they could lose up to $80,000 (or
more) on the property. Homeowners who are considering a Deed-In-Lieu should ask
their lenders for the following:
- Moving time – The homeowner may ask for a period of time that will enable them to move out and avoid getting evicted.
- Release from liability – As per of their Orange County Deed-In-Lieu, the homeowner can ask the bank to release them of any liability or obligation to pay debt that may remain once the house has sold.
- Cash – The homeowner may ask the bank for a cash incentive or moving allowance that will help them to transition to another home.
Get Help with Your Deed-In-Lieu
Before starting an Orange County Deed-In-Lieu themselves, every homeowner who meets the Deed-In-
Lieu criteria should consult with an attorney in their area to get help with their Deed-In-Lieu to avoid
making mistakes that would come from doing it themselves.