When a homeowner chooses the option of a deed in lieu of foreclosure, he or she is voluntarily releasing the right to a property by executing a deed in the name of the lender. This option relieves the homeowner of the obligation to a property that he or she is no longer able to afford. If a loan modification or a forbearance plan is not possible, and bankruptcy will not provide the help that is needed, a deed in lieu of foreclosure may be effective.
If a deed in lieu of foreclosure is successful, it will relieve the homeowner of any financial obligation and recording of a foreclosure on a credit report.
Deed in Lieu Requirements
In order to qualify for a deed in lieu of foreclosure, the following requirements need to be present:
- You are delinquent on your mortgage
- You have made an effort to sell the property
- You do not have any second mortgage debt
- You have no liens or other encumbrances, other than taxes
- You have the proper financial worksheet and other supporting documents
Our lawyers will negotiate with your lender, protect your interests in court and work to achieve the best possible result at all times. If you are faced with the possibility of foreclosure in Illinois, seeking a deed in lieu of foreclosure may be an effective option to preserve your credit rating and relieve you of any financial obligation.
The Law Office of Foreclosure Defense can help. Our attorneys are experienced at handling all forms of foreclosure defense, including deeds in lieu of foreclosure.