A short sale and a deed in Lieu of Foreclosure are the best options if you want to give your home up, but don’t want foreclosure. These options let you sell or leave your home without being liable for any deficiencies.

Short sale

A short sale is where the lender allows you to sell your house, but for an amount “short” of the money you owe. There are some states where the lender can sue you even if the house is already foreclosed or if you have already sold the house just to get the deficiency. There will be a deficiency if the money you get from the sale is bigger than the amount you owe. The difference between the money you got from the sale and the money you owe is the deficiency. If you are in a state where the lender can sue you to recover the deficiency, the best option for you is to ask the lender to allow you to sell. You should put this agreement in writing. This agreement is called short sale.

Deed in lieu of foreclosure

On the other hand, deed in lieu of foreclosure is where you give your house to the lender so that your loan will be cancelled. The act of giving your house to the lender is the “deed.” With this agreement, the lender will not engage in any foreclosure proceedings or cancel any foreclosure proceedings. Don’t forget to put the agreement on writing if you want the lender to forego the deficiency after the sale of your house. Before your lender will agree to sign a deed in lieu of foreclosure, you may be required to put your house on the market and wait for an average of three months. Also, banks would want you to sell your own house instead of them.

To know, which of these options is best for your foreclosure situation, it is best to consult or hire a lawyer.

Related Posts
Risks and Benefits of buying a foreclosed property
Buying foreclosure property may give you great discounts; however, there are various underlying risks to it too. Benefits Pre-foreclosure home owners want to sell their houses in a hurry to avoid foreclosure, ...
READ MORE
How copyright work
The term copyright is not a novel term. However still here are many who have no idea about how copyright work? If you are one of those who are in ...
READ MORE
Real estate property purchasing option?
When you are investing on a real estate property, you can choose to buy through real estate investment trust (REIT), limited liability company (LLC) or under your own name. Choosing ...
READ MORE
Legal help while selling your home
Selling a home can bring up a lot of issues and could easily become a maze of processes. To make sure that you get your home’s worth, it would be ...
READ MORE
Workers Compensation Act
The Longshore and Harbor Workers Compensation Act (LHWCA), administered by The Office of Workers Compensation Programs (OWCP), provides for compensation and medical care to certain maritime employees (including a longshore ...
READ MORE
Negative consequences of getting traffic ticket
Will traffic tickets lead to imprisonment? This may be the most negative consequence for getting a traffic ticket, but usually, only those convicted with serious traffic violations have high possibility ...
READ MORE
Landlord cancel agreement: when and how?
A landlord can legally cancel the rental agreement if the tenant commits a significant violation or break the law. Ending “For Cause” When the landlord wants to end the tenancy due to ...
READ MORE
What is involved in filing for bankruptcy
People who are having problems paying their financial obligations sometimes consider bankruptcy to acquire comfort from selection initiatives, remove some or all of their financial obligations or rebuild their debt ...
READ MORE
Things a tenant should know about rental agreement
Rents are usually due on the first day of the month. But generally, rent payment depends on the agreement you have made with the landlord. It may be specified in ...
READ MORE
Bankruptcy filling without an attorney
Within the 2005 legal guidelines, customers have to choose credit score guidance before submitting a new individual bankruptcy request. Consumers are also subjected to an easy method check, to determine ...
READ MORE
Risks and Benefits of buying a foreclosed property
How copyright work
Real estate property purchasing option?
Legal help while selling your home
Workers Compensation Act
Negative consequences of getting traffic ticket
Landlord cancel agreement: when and how?
What is involved in filing for bankruptcy
Things a tenant should know about rental agreement
Bankruptcy filling without an attorney