What is Deed  In Lieu of Foreclosure?

A Deed In Lieu of Foreclosure (DIL) is a deed instrument in which the homeowner conveys all ownership interests in their property back to the lender in order to satisfy a loan that is in default and avoid foreclosure proceedings or will stop foreclosure proceedings. 

Fact:

There are 83.62 million mortgages in the United States as of June 30, 2023, and 3 % or 2,508,600 (million) are between 30 and 89 days past due. In 2022, there were 324,237 foreclosures in the United States. That was an increase of 173,084 over 2021 which was 151,153. In most of the over 3000 counties in the United States a home is sold in a Foreclosure Auction every week. That is a staggering 6235+ a week.  

What we do:

1) We access the County Government databases. 

2) We access Private databases that we pay a fee to use.

3) We research, locate and verify that we have the most recent contact information for the person listed on the record in the databases before we contact the homeowner to offer our services to help them protect their financial future. 

Why we do it: 

Homeowners need help!

The demand for assistance for homeowners who are in trouble with their mortgages has never been greater than it is today! 

The Lenders do not provide this information to the homeowners!

How we do it:

After we conclude our research we reach out to the Homeowners and offer our assistance. We give them information about their mortgage holder that they may not know. We guide them through the negotiation process with their Lender. 

The Best Possible Outcome for all:

Although we cannot guarantee that your Lender will agree to do a Deed in Lieu (DIL). Here are a few of the reasons why it is the best possible outcome for all parties:

A Win for the Lender:

1) It reduces their foreclosure rate. 

2) It allows them to carry fewer bad debts for a lesser period of time, thus increasing their ability to borrow and to lend money.  

3) It helps the Lender become more profitable.

4) It limits the cost and time a foreclosure can take and eliminates the complications of the foreclosure process.

5) It lowers the rick that the Homeowner will file bankruptcy in an effort to delay the foreclosure proceedings.

6) The house is returned to them sooner and in better condition than a foreclosure, allowing then to get it on the market faster for a more profitable sale. 

A Win for the Homeowner:

1) It allows the Homeowner with no options left but bankruptcy and foreclosure to walk away from their loan.

2) It gives the Homeowner who has already tried a short sale or a loan modification but was turned down another proactive action to avoid the foreclosure process. 

3) The Homeowner is released from the indebtedness of the loan. 

4) The impact to their credit is limited to showing the late payments (if any) and that the loan was paid in a settlement vs. the black mark of a foreclosure or bankruptcy which would prevent them from qualifying for a new home loan for a much longer period of time.  

5) The Homeowner also avoids the public notoriety of a foreclosure proceeding and it avoids the lengthy, stressful, and uncertain process of a foreclosure.

Win for all:

A foreclosure process that could take up to 3 years can be resolved in a matter of weeks!

A Deed in Lieu of Foreclosure is truly a fresh start for Homeowners whose only outcome would have been foreclosure. 

Contact us today to find out more about how we can help you get the fresh start that you deserve.