What is Deed in Lieu of Foreclosure?

Instead of waiting for foreclosure, some property owners may just give back the deed to the lender and walk away. Deed in Lieu of Foreclosure is not a right of owners, the lender must agree to it. If they do, there will not be a short sale. The property becomes bank owned and the lender may auction it or hire a listing agent to sell it for them.

A Deed in Lieu of Foreclosure agreement does not protect the homeowner from subsequent judgements levied against them by the lender.

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About Toni Hedstrom

I am one half of Hedstrom & Stamm Home Solutions, a dynamic real estate team with emphasis on home marketing utilizing our exclusive Home Ready Program.