Lost in Foreclosure

Courtesy of Arizona Short Sale Office.

Deed In Lieu of Foreclosure Arizona Short Sale Office will negotiate with your lender to accept and allow YOU THE HOMEOWNER to sign your home back over to the bank rather than allowing it to go into foreclosure and allow your debt to be forgiven.   It’s a win-win situation for the lender and the borrower since the lender will avoid the complication and expense of foreclosure and the borrower avoids the outcome of foreclosure and quite possibly bankruptcy.   Although no one really wins in the true sense of the word, a deed in lieu of foreclosure is sometimes the best option when mortgage payments can no longer be paid Do I Qualify for a Deed in Lieu of Foreclosure?To qualify for a deed in lieu of foreclosure, your home must be on the market at current market value. This shows loan company investors you are trying your best to satisfy the debt instead of trying to dump a financial burden without trying to sell. Typically the home must be on the market for 90 days before a deed in lieu of foreclosure can be finalized, and the home must be uninhabited to complete the process. In addition, your income must meet the criteria set by your lender. If it is determined you can afford to make the payments, you will have to continue trying to sell the home, and a deed in lieu of foreclosure will not be an option. If you are suffering a temporary setback, a forbearance might be an acceptable alternative to help you get back on track.

What Information Will My Lender Require for a Deed in Lieu of Foreclosure?When we contact the lender for the very first time regarding an inability to pay, we will need to speak to a customer service representative in the workout department. They will ask what caused your current financial situation, and they will predetermine whether or not you are a viable candidate for a deed in lieu of foreclosure or another option to get you out from under unaffordable mortgage payments. Once we deem you are   eligible for a deed in lieu of foreclosure, your lender will require a copy of the listing contract from our realtor, copies of current pay stubs, and a list of monthly bills.