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
The Family and Medical Leave Act
Administered by the Wage and Hour Division, the Family and Medical Leave Act (FMLA) requires employers of 50 or more employees to give up to 12 weeks of unpaid, job-protected ...
READ MORE
Property tax law
Property tax is a tax on real estate levied by any level of jurisdiction from National government right down to municipal or county level. The amount charged is usually between ...
READ MORE
How to fight traffic tickets (Top Strategies)
If you think you don’t deserve the traffic ticket you got, you can exert effort to fight it off. There are certain strategies you can do to successfully fight traffic ...
READ MORE
Do you need a Real Estate Lawyer or not?
When buying your own home, you will need to garner the assistance of a Real Estate lawyer to ensure that the transaction goes smoothly. There are a number of demands ...
READ MORE
Power of Attorney
Power of Attorney is a lawful document which grants you the legal right to appoint another individual to act on your behalf and manage your financial affairs, property or health ...
READ MORE
Alimony Legal Services
When a married couple gets a divorce, a family court judge may order one spouse to make monthly "alimony" or spousal support payments to the other, based either on a ...
READ MORE
Dealing with your insurance company
If your house gets damaged by fire or other disasters, you can look to your insurance company for reimbursements. But your success of getting relief from your insurance company may ...
READ MORE
The real estate law and the tips to purchase real estate
The Real Estate Law is indeed extensive and this is not possible for a layman to know each and every memorandum of the law. Thus, if you are planning to ...
READ MORE
Law and order
Law and order are the two most important aspects for a nation to grow.There are different types of laws.Federal laws apply to everyone whereas State and Local laws apply to people ...
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
The Family and Medical Leave Act
Property tax law
How to fight traffic tickets (Top Strategies)
Do you need a Real Estate Lawyer or
Power of Attorney
Alimony Legal Services
Dealing with your insurance company
The real estate law and the tips to
Law and order
Real estate property purchasing option?