| The first reaction of most people facing house | | | | your house so that the buyer at the foreclosure |
| foreclosure is to try avoiding it. If you are in this | | | | sale will buy your house free of the judgments |
| situation, you actually may have several options. | | | | and tax liens. Without going through the legal |
| One option is giving your house to your mortgage | | | | foreclosure process, your mortgage lender would |
| lender. This is commonly referred to as a "deed in | | | | probably have to pay the judgments and tax |
| lieu of foreclosure". | | | | liens, and your lender will not do that. |
| Instead of you and your mortgage lender going | | | | Third, if your mortgage lender is willing to accept |
| through the entire foreclosure process, you | | | | a deed in lieu of foreclosure and you qualify,be |
| simplydeed your house to your mortgage lender. | | | | careful of what documents you sign. Sometimes, |
| Sounds simple. But, as with just about everything | | | | when you ask a mortgage lender aboutgiving a |
| else,the devil is in the details. | | | | house back to avoid foreclosure, the lender will |
| First, your mortgage lender may not be willing to | | | | agree only if you sign a Promissory Notepromising |
| accept a deed from you instead of going through | | | | to pay the lender more money. If you are willing |
| the foreclosure process. Your lender may want | | | | to pay your lender more money, so beit. But, be |
| more than your house if you owe your lender | | | | sure that you understand what you are agreeing |
| more than your house is worth. For instance, if | | | | to. |
| you owe your lender $125,000 and your house is | | | | When giving a house back to avoid foreclosure, it |
| worth $100,000, your lender really wants the | | | | is wise for you to have a lawyer review all ofthe |
| $125,000. Not your house worth $100,000. | | | | paperwork and make sure that it is what you |
| Your lender may have some other reason not to | | | | agreed to and that it is in your best interest. |
| accept a deed from you. The reason may be | | | | Infact, if you have any questions of any nature |
| valid (such as affecting your lender's financials) or | | | | about avoiding foreclosure, talk with a |
| your mortgage lender might simply be "hard | | | | lawyerlicensed in your state. |
| nosed". Either way, your lender may not be willing | | | | Beware (this is vitally important), if you are facing |
| to work with you and you cannot make your | | | | house foreclosure, you may have several options. |
| lender accept a deed in lieu of foreclosure. | | | | Consider all of the options because some options |
| Second, even if your mortgage lender will accept | | | | will work only in certain situations and because |
| a deed from you, you may not qualify. If you | | | | you want to use the best option for you. |
| have any judgments or tax liens against you, | | | | This article is general information. If you have any |
| your lender has to go through with foreclosure. | | | | questions of any nature concerning |
| The legal foreclosure process will remove | | | | stoppingforeclosure, talk with a lawyer licensed in |
| judgments and tax liens as encumbrances on | | | | your state. |