I’m behind on my mortgage. Can I do a deed in lieu of foreclosure before my house goes into foreclosure?
You can ask your loan provider if this is a possibility. However, most lenders will not accept a deed in lieu of foreclosure unless the homeowner has tried to short sell the property and have been unable to do so. This means that a real estate agent will list the home for sale, marketing the property at a price that is in line with similar properties in the neighborhood.
If the home has been listed and failed to sell, the lender may consider a deed in lieu, but only after other avenues, including a loan modification, have been exhausted.
If you have any further questions about your options prior to foreclosure, please contact us.