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Negotiating the Deficiency Judgment Because a deed in lieu is a voluntary agreement between you and the lender, its possible to negotiate a deal in which: the lender agrees not to pursue a deficiency judgment. you agree pay part of the deficiency, or. you agree to repay the deficit over time.
A deed-in-lieu of foreclosure is an arrangement where you voluntarily turn over ownership of your home to the lender to avoid the foreclosure process. A deed-in-lieu of foreclosure may help you avoid being personally liable for any amount remaining on the mortgage.
The short answer is yes, a deed-in-lieu is considered a negative on a borrowers credit report. However, FHA loans do offer some hope for borrowers who have established good credit following the DIL action.
Benefits Of A Deed In Lieu A deed in lieu can eliminate your deficiency if you owe more on your home than the home is worth. In exchange for giving the lender your deed voluntarily and keeping the home in good condition, your lender may agree to forgive your deficiency or greatly reduce it.
A deed in lieu of foreclosure involves a homeowner transferring ownership of their house to their mortgage lender instead (in lieu) of going through the foreclosure process. Its just one way to avoid foreclosure, however, and isnt right for everyone facing difficulties making their mortgage payments.
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Benefits Of A Deed In Lieu A deed in lieu can eliminate your deficiency if you owe more on your home than the home is worth. In exchange for giving the lender your deed voluntarily and keeping the home in good condition, your lender may agree to forgive your deficiency or greatly reduce it.
A deed-in-lieu of foreclosure is an arrangement where you voluntarily turn over ownership of your home to the lender to avoid the foreclosure process. A deed-in-lieu of foreclosure may help you avoid being personally liable for any amount remaining on the mortgage.
Disadvantages to Lender A lender should also hesitate before accepting a lieu deed where there are outstanding subordinate liens or judgments against the property. In such a situation, the lender will have to foreclose its mortgage, with the attendant expense and time involved to obtain clear title.

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