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Foreclosure Refinance Article
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Save Your Credit history opt for a Deed in Lieu of Foreclosure
from:Being faced with a foreclosure on your home is one of the most stressful situations in life. You are worried about losing your home and your investment, and you hate the thought of a foreclosure and the effects it will have on your credit rating and your future. In certain situations, and in certain states, there is an alternate to a foreclosure, which is called a deed in lieu of foreclosure.
In order to obtain a deed in lieu of foreclosure, both the financial lender and the homeowner must agree to sign over the title of the deed to the lender. In other words, the financial institution will now own the home in question. In return the original homeowner is relieved of paying back the debt still owed on the home. The homeowner in default have no more liabilities in regards to the said house, and by procuring this agreement with the lender, the deed in lieu of foreclosure will not affect the homeowner’s credit rating like a traditional foreclosure would. The agreement to go for the deed in lieu of foreclosure must be made at the start of the foreclosure process. The deed in lieu of foreclosure is an out of court settlement.
The bank or lending institution will most often opt for a deed in lieu of foreclosure when the debt is so great that the homeowner cannot pay it. It would not be worthwhile for them to seek a deficiency judgment, which is a court order to recoup part of the outstanding debt related to the foreclosure. They normally follow through with the actual foreclosure when the debt isn’t as much as the value of the property.
The advantages of a deed in lieu of foreclosure is an economic one for the lender, by settling out of court the lender will save money on court and attorney fees. The lender will also make sure that the deed in lieu of foreclosure will not make them responsible for any mortgage liens upon the property before proceeding with this action. In other words holding the title will be a separate entity from any liens (claims for payment from contractors etc.) upon the property. At this point the bank or other lending institution will be a be able to sell the property and recover their loses. The new owners of the property would be responsible for the liens if there are any pending.
The benefit to the original homeowner is that the record of foreclosure will not be recorded on their credit history.
Foreclosure Refinance Specific links
Foreclosure Refinance News
Mayor Learning Firsthand About Dealing with Mortgage Foreclosure - LoanSafe
Mayor Learning Firsthand About Dealing with Mortgage Foreclosure LoanSafe Speaking Friday, Bennett said the problem, which he expects to be resolved soon, started when he recently attempted to refinance his home and was refused due to his job status changing when he became mayor in January 2008. “I was wanting to refinance,” ... |
Obama wants Congress to help homeowners - Fox News
 AFP | Obama wants Congress to help homeowners Fox News Administration officials said refinancing applications have increased nationwide by 50 percent since Obama made it easier to refinance. In Nevada, which ranks second in the nation in foreclosed homes, officials said refinancing applications were up by ... Obama touts reelection bid in foreclosure epicenter |
Facing Foreclosure, California Man Commits Suicide - WAPI
Facing Foreclosure, California Man Commits Suicide WAPI The couple's troubles began after they were solicited to refinance their mortgage and became locked into an alleged predatory loan for the home, which they purchased in 2000, according to their attorney Chris Gardas. The couple alleges that there was a ... |
U.S. seeks to make refinancing easier - Rochester Democrat and Chronicle
U.S. seeks to make refinancing easier Rochester Democrat and Chronicle Thirty-one states posted a monthly increase in homes with a first-time foreclosure notice according to Realty Trac Thursday April 12, 2012. Nevada led the pack with an increase of 153 percent. / The Associated Press Are you eligible for a refinancing ... |
Banks Dodge Expected Wave of Foreclosures - Investorplace.com
 RealtyBizNews | Banks Dodge Expected Wave of Foreclosures Investorplace.com It was a given that housing prices wouldn't stabilize until the foreclosure backlog burned off, but that may not be the case. A decline in distressed sales, cash incentives to borrowers to do short sales, the Home Affordable Refinance program — and ... There's No Time Like The Present! |