How Can I Get A Deed-In-Lieu Of Foreclosure Agreement Written Up?

If you desire to get a Deed-in Lieu of Foreclosure you need to get on the phone to your lender or mortgage company and express to them what you want to do.

Typically if you are headed for foreclosure you can stop foreclosure by requesting that you be able to do a Deed-in-Lieu of Foreclosure when you talk to your lender. This is not easy because they do not want to get the house back from you regardless of your circumstances. Basically a Deed in Lieu of Foreclosure is where you deed the property back to your lender so they will sever ties with you and your obligation to pay them back for your mortgage.

They will make you jump through hoops. In order to consider giving your house back to them they will want you to try to sell your home for a minimum of 90 days or so. You will want to get a Realtor to list the house for you because he or she will work out a "Short Sale" between you and your lender should you get an offer that will not meet your financial obligation. It is unlikely they will give you a "Deed in Lieu-of Foreclosure without going through these steps.

In the "Short Sale" packet you will have a list of information that you will be required to provide to the "Short Sale" department: tax reports for 2 years, income verification, ,asset accounts as well as a hardship letter will be necessary to find and put together and get to them. They may require a minimum period of time to consider the short sale, typically 90 days,

Have your Realtor help you with the hardship letter if your Realtor has a lot of experience in this. There are certain ways to prepare this letter that will help you a lot. You have to have had a serious hardship for them to consider the "Deed-in-Lieu-of Foreclosure." A Death of the income earning spouse, a serious illness in a breadwinner, other income threatening events may qualify you for the Deed-in-Lieu-of Foreclosure. Depending on the circumstances and your need for the Deed-in-Lieu-of Foreclosure, the lender will consider all the facts and render a decision for you or against you.

The actual writing of the "Deed-in-Lieu-of Foreclosure will be prepared by an attorney in your state, specifically the attorney that will work with the escrow company to close your transaction for the buyers of your house. Because it is a legal document it has to be prepared by an attorney, at least in my state. You have to go through the process in order to get the decision from the lender that they will agree that you can give it back to them. If you are able to do the "Short Sale" then you will not have to give it back to the lender, and will avoid foreclosure all together, which is always preferable for your future.