Let’s face it; some homeowners who are facing foreclosure do not want to keep their home. In these instances some homeowners are not aware that there are options available to avoid the foreclosure and walk away. Deed in lieu of foreclosure is one way that homeowners can possibly walk away without the repercussions of the impending foreclosure affecting their credit score or the lender chasing down the homeowners for the balance of their mortgage.
Deed in Lieu of foreclosure is where the homeowner hands over the deed to their home to the lender in exchange for the homeowner being released from the terms of the mortgage. The lender can then resell the property to recoup as much money as they can that was lost by releasing the homeowner from their mortgage terms.
Now the question you must be asking yourself is “Why would someone want to walk away from their home?” Well, there are a lot of cases where the home that was purchased was not all that it was meant to be. Some examples include:
1) If a homeowner owes more money on their home then the current market value and the property value is continuing to depreciate, it might be in the homeowner’s best interest to do a deed in lieu of foreclosure so they do not remain in an investment that is harmful to their family.
2) Homeowner’s with bigger families find that the need for a bigger home is not required once their children go to college.
3) Sometimes the homeowner’s job is way too far of a commute than when they purchased the home and are finding that in today’s economy it is too expensive to live so far away from their job.
4) The crime rate might have gone up in the area they live in and it is not a safe neighborhood anymore for their family.
As you can see there are many reasons that someone would want to walk away from their home. While most homeowners want to keep their home, the few that do not want to keep their home have options to walk away. There is no guarantee that a lender will grant a deed in lieu of foreclosure. Hiring an experienced foreclosure attorney can help homeowners review their options and get the best possible solution for the homeowner given their current situation. To learn more about deed in lieu of foreclosure or other foreclosure defense strategies, visit www.legalhelpgroup.com.