Posted on: 28th Jul, 2008 09:57 am
i have a situation where a family member is going to be foreclosed on. the foreclosure has not started so can this person quitclaim deed the property back to the lending institution in lieu of foreclosure? if so will this relieve them of the debt and avoid foreclosure? i would think the lending institution would be interested in the quitclaim deed to avoid the expense of foreclosure - am i wrong?
Hello abc123,
I believe you are speaking of a Deed in Lieu of foreclosure.
Convincing a lender to accept a Deed in Lieu (DIL) of foreclosure, should only be used as your very last, extreme resort to avoid a foreclosure.
The lender has several workout options available to the homeowner. The homeowner should definitely be contacting their lender and talking to someone in the Loss Mitigation department to find out what workout plan they may qualify for to avoid foreclosure.
As for the Deed in Lieu:
There are certain eligibility requirements at
http://www.mortgagefit.com/problems/dil-pmi.html#59364 that you must meet, before your lender will accept a Deed in Lieu from you.
I certainly hope that the homeowner is pursuing all their options available to them through their lender.
Please let us know if there are more questions and issues.
Good luck.
[Post edited as per forum rules. Thanks.]
I believe you are speaking of a Deed in Lieu of foreclosure.
Convincing a lender to accept a Deed in Lieu (DIL) of foreclosure, should only be used as your very last, extreme resort to avoid a foreclosure.
The lender has several workout options available to the homeowner. The homeowner should definitely be contacting their lender and talking to someone in the Loss Mitigation department to find out what workout plan they may qualify for to avoid foreclosure.
As for the Deed in Lieu:
There are certain eligibility requirements at
http://www.mortgagefit.com/problems/dil-pmi.html#59364 that you must meet, before your lender will accept a Deed in Lieu from you.
I certainly hope that the homeowner is pursuing all their options available to them through their lender.
Please let us know if there are more questions and issues.
Good luck.
[Post edited as per forum rules. Thanks.]