A Useful Option When You are Facing Foreclosure
Another option for homeowners and lenders when dealing with property in California is a deed in lieu of foreclosure. Like a short sale, a deed in lieu of foreclosure is an option for individuals who wish to avoid the foreclosure process, and is beneficial for lenders who do not want to go through the hassle and cost of a formal foreclosure process.
A deed in lieu of foreclosure is a document that conveys the title to a piece of real estate from the property owner to the lender. The owner will surrender any and all interests in the real estate in exchange for a complete release from liability under the loan. Both parties in the transaction must consent and there may be a separate settlement agreement that is drafted to articulate more specific details of the conveyance, including the release from liability.
At the Law Offices of Mark A. Brifman, our attorneys work with homeowners and lenders in deeds in lieu of foreclosure and help our clients avoid any potential problems that may arise in the process. We will examine any liens or taxes on the title and work to appraise the value of the property.
Benefits of a Deed in Lieu of Foreclosure
There are several benefits for homeowners and lenders in a deed in lieu of foreclosure.
Homeowners will usually be released from any personal indebtedness associated with the loan and will also avoid the embarrassment of a formal foreclosure proceeding. They may also receive more generous terms than they would if they were dealing with a formal foreclosure proceeding.
Lenders will reduce the time and expense that is involved with the repossession of property in foreclosure and will gain additional advantages if the former owner of the property files for bankruptcy. Lenders may also pursue a deed in lieu of foreclosure when they do not have a chance of collecting a deficiency judgment against the homeowner.
Contact us at the Law Offices of Mark A. Brifman to speak with an experienced real estate lawyer about your situation. We are located in Mission Hills and represent clients in Los Angeles and the surrounding communities of Southern California. Call us for a free initial consultation at 818.920.2113.
