Deed in Lieu Help

Avoid foreclosure through structured property transfer solutions.

In this video:

What is a deed in Lieu of Foreclosure?
What are some reasons to do DILF?

Deed in Lieu of Foreclosure Legal Services

A deed in lieu of foreclosure (DILF) is a deed that transfers the property back to the lender in order to cancel a debt. It requires the lender’s consent and cooperation, but it is an alternative option to facing foreclosure. There are some advantages to using a deed in lieu of foreclosure:

A DILF can be done more quickly than the minimum required time to complete a foreclosure. Your issues with the loan are solved much sooner, and you are able to move on more quickly.
A DILF can be less expensive, because there are very few fees. The fees of creating the deed, title search, appraisal, and possibly several thousands of dollars in lender’s fees compared to the fees associated with foreclosing.
The sale of the home is not public. It is not publicized as a foreclosure, because they are more confidential.
The debtor’s credit is unaffected.

A lender does not have to cooperate or give consent for you to give back the home to avoid foreclosure. Most of the time it is required that the home’s value exceeds the loan amount in order to do a DILF. For a DILF to be useful to a lender, they must be able to resell the home. If the home does not look like it originally did and has become run down, then it will make it difficult for your lender to decide if a DILF is a good option for them. If the lender can’t sell it, then there is no recouping their loss.than with a traditional loan.

Price: $500 (Setup an appointment here).

Alternative Solutions to Avoid Foreclosure

When You Are Considering a Deed in Lieu of Foreclosure

A deed in lieu of foreclosure has specific rules. If these rules are broken, it makes the original lender able to rescind the deed for up to four years.

Below are some of the ways for a lender to rescind the deed:

A homeowner failed to disclose a lien or encumbrance.
The lender had no knowledge of the undisclosed lien.
At that time, the lender can foreclose and file to rescind the deed.

What Happens in a Foreclosure?

After a foreclosure, the debtor remains personally liable for the unsatisfied portion of the promissory note and associated foreclosure expenses. When this happens, the lender may seek repayment through a deficiency judgment. Under a DILF, lenders lose the right to recover the deficit.

What are some of the options for ending the foreclosure process?

Paying off the debt before the foreclosure sale also known as an equity of redemption.
Refinancing with another lender. It may be impossible to do this due to poor credit and the time required to complete an entire refinance.
Selling the property and paying off the debt.
Conveying the property back to the lender in exchange for cancelling the debt, a deed in lieu of foreclosure.

FAQ

What is the Difference Between Foreclosure & Deed in Lieu?

What is a Major Disadvantage to Lenders of Accepting a Deed in Lieu of Foreclosure?

What Can You Negotiate in a Deed in Lieu of Foreclosure?

View Other Types of Investor Related Real Estate Transactions

TRO – Temporary Restraining Order

Deed in Lieu of Foreclosure

Maas Law Firm, Texas Real Estate Attorney

We are a San Antonio Real Estate Law firm that offers fixed fee rates for a variety of legal transaction services, including Owner Finance & Wraparound Closings, Foreclosures, Deeds & Releases, Real Estate Contracts, Title Issues & Judgments, Wills & Estates, Probate & Administration, & LLC Formations. If you need help assessing your case give our office a call.

Victor has been doing real estate transactions as a lawyer since 2002 & as an investor himself since 2003. There are a lot of nuances with real estate & we hope that if you have any questions to contact us during regular business hours. Along with being a Real Estate Attorney, Victor is also a Real Estate Broker, making his expertise long standing & efficient.

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