Foreclosure Deed to Avoid Foreclosure

How can offer deed in lieu of foreclosure in California?

How does it work?

This is an arrangement for you to hand over your home to your bank or lender to avoid foreclosure. Then, your lender sells the house and covers the debts that you owe.

When should you consider a deed in lieu of foreclosure

•  You have no or negative equity in your home
• delaying or stopping foreclosure will not help you that much as you do not expect a financial relief soon
• you do not have any hope to find a buyer on your own

Advantages of deed in lieu of foreclosure

• your credit report will have no record of foreclosure
• you stop foreclosure process immediately
• when your lender agrees to take over your home, then, you may negotiate that you will not owe any debt after the sale. This ends your liability.
• your lender saves time and money by getting the deed from you to sell the property faster to maintain its liquid assets.

Acceptance of deed in lieu of foreclosure is not automatic

You need to get the agreement of your bank or lender before offering your deed and obtain an acknowledgement of its receipt and acceptance. Furthermore, your deed in lieu of foreclosure must be recorded in your county's recorder's office in California.

When your lender accepts the deed in lieu of foreclosure, your lender accepts to pay all lien holders. In foreclosure sale,your lender does not have to pay junior lien holders. That's why your lender may or may not accept your deed depending on each special circumstance.

Need help? Review your options to get foreclosure help by professionals (lawyers specializing in foreclosure, foreclosure consultants registered to assist homeowners subject to foreclosure, debt counselors, and real estate agents in California), California state agencies, county agencies in California, consumer advocacy groups, and nonprofit organizations in California.