Deed in Lieu - Another Alternative to Foreclosure

The goal of a deed in lieu is to prevent foreclosure for homeowners who can no longer make their mortgage payments. While it will not allow you to keep your property, it is often an easier process than a foreclosure and may have a less negative impact on your ability to get a loan in the future.

You may be eligibile for a deed in lieu of foreclosure if:

  • you are going through a hardship (for example, a job loss, divorce or a medical emergency)
  • you are unable to afford your current mortgage payment
  • you are unable to modify your current mortgage to make it affordable
  • you can’t sell your home for less than your remaining mortgage balance (also known as a "short sale")
  • you have tried to sell your property unsuccessfully for at least 90 days
  • you are facing foreclosure, and want to reduce the impact to your credit

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