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Deed in Lieu of Foreclosure

Tough Foreclosure Defense

Economic times are rough, and if you find yourself and your home underwater in debt, the attorneys at Perez Conrique Law can help you get back afloat. Due to a combination of lowering property values and skyrocketing interest rates, Orlando homeowners may find themselves in a situation where their mortgage debt is greater than the actual value of their home. The threat of foreclosure may loom over your head, but our firm assures you that in situations of underwater mortgage or severe financial hardship, there are numerous alternatives to foreclosure.

What is a deed in lieu?

One of the many alternatives that you can take when facing underwater mortgage, or if you are behind on mortgage payments and have not yet had a foreclosure action filed, is a Deed in Lieu of Foreclosure. Also known as a "deed in lieu," it is an agreement where a homeowner voluntarily transfers ownership of the property to the lender in exchange for the lender releasing the homeowner from all obligations under the mortgage. A deed in lieu is intended for mutual benefit, where the homeowner can be released from all or most of their debt with minimal effect on a credit report, and the lender can avoid a costly foreclosure process. Deeds in lieu can be the safest way to shed underwater mortgage and resolve debt, but without proper legal guidance, a deed in lieu could become a very tricky and difficult process to successfully accomplish.

For example, in cases of multiple mortgages, homeowners must pay off or satisfy the terms of existing mortgages before a deed in lieu can even be weighed as an option. In addition, deeds in lieu are usually only granted if a homeowner is able to prove extreme financial hardship. Applicants of a deed in lieu should be prepared to prove hardship with documents such as the following:

  • pay stubs
  • receipts
  • bank statements
  • tax returns.

Should your lender not approve of your financial hardship, a deed in lieu could be denied. Lastly, lenders require homeowners applying for a deed in lieu to list the property for a short sale for a minimum of 90 days before even considering the approval of a deed in lieu. Such complications could seem overwhelming when so much is on the line, so consulting an Orlando foreclosure defense lawyer could ease the process or determine if there are alternative routes that could lead to a bigger success.

Contact us today to learn how we can help you keep your home

Get Advice from an Orlando Foreclosure Lawyer

Advantages and disadvantages to deed in lieu of foreclosure agreements exist, and it is important to remember that everyone's financial hardships, circumstances, and situations differ greatly. What may be the best decision for you can only be determined with experienced and knowledgeable legal advice.

If you owe more money to the bank than your property is worth, contact an Orlando foreclosure attorney to determine how to best proceed with your financial situation. Our attorneys are here to help, and with more than 20 years of combined experience, we are ready and willing to analyze your personal situation to get you and your family back on track. In your time of distress, trust an attorney who can go above and beyond standard legal service by offering compassionate advice as well. Contact our firm or fill out a free case evaluation.

Perez Conrique Law - Orlando Foreclosure Attorney
Located at 746 North Magnolia Avenue, Orlando, FL 32803. View Map
Phone: (407) 749-1591 | Local Phone: (407) 545-4400.
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The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.