|
Deed in Lieu of Foreclosure |
| Print |
|
|
Deed in Lieu of Foreclosure
1. Upside Down Analysis;
2. Qualified Written Request Under RESPA;
3. Preparation of Deed in Lieu package;
4. Deed in Lieu offer;
5. Contact, followup and negotiation by an attorney.
With real estate sales declining and short sale properties sitting without buyers, a deed in lieu may be your best way to avoid foreclosure.
We have two step deed in lieu of foreclosure process.
First we provide you with our Upside down analysis ( for more information click here) to make sure that a deed in lieu is right for you and you are aware of the risks and the rewards. We also help you design a strategy to best help you accomplish your goals with respect to deficiency, taxation and credit.
Then we have you begin filling out parts of our pre-foreclosure package. We review the hardship letter - get the proper authorizations, see if we can legitimately make a claim which gets the lenders ready to accept the deed in lieu and then we draft our offer.
We will also provide you with cease and desist letters if the lenders collection departments are disturbing you and they probably will if you decide to stop making payments on your loans.
If the lenders accepts your offer we will review or draft the closing paperwork with you.
or
If the lenders requests supplemental information, our team then work with you to prepare the supplemental pre-foreclosure package. Once we put together the supplemental information we will submit the pre-foreclosure package to the lender. Once the package is on the negotiators desk we will have one of our lawyers personally negotiate with the lenders "negotiator" or "closer".
If the lender is not meeting all the terms you require we will draft and submit a qualfied written Request under RESPA. Experience has shown us, what questions to ask and what buttons to push Our letter is designed to solicit the information we need to gain gain leverage over the lender. It also frequently has the benefit of putting us in touch with decison makers in the legal department or on the management team.
More on Deed in Lieu
A deed in lieu of foreclosure eliminates the step of having to sell your home.
For some California home owners a deed in lieu the best option. A deed in lieu may save you thousands of dollars in taxes. California has not aligned its tax code with the new federal law on loan forgiveness.(for 2009). Therefore, a short sale may expose you to many thousands of dollars in taxes you might not face with a deed in lieu. Make sure your understand the difference between taxation for loan forgiveness vs liablity for a deficiency to the lender. (this area is complex.)
Please note, even if you have two loans you can still negotiate a successful deed in lieu.
Again, just like with short sales, think carefully and know the law before you provide information about your job or you assets to the lender's loss mitigation department. When you call your lender work out department they warn you they are collecting a debt. You get that waring for a reason.
Finally, make sure you have a complete workout strategy set up before you start your workout. Don't let the sold out second dictate the terms of the workout to you.
If you are interested in getting started, contact us.
Please do not wait until after a Notice of Default or a Notice of Sale is filed.
|
|
Last Updated ( Saturday, 17 January 2009 )
|
