By Rafael Onak, InsuranceAgents.com Staff Writer
As Atticus Finch once experienced, legal proceedings can get a bit tumultuous at times. Fortunately for homeowners unable to pay their mortgage, a deed in lieu of foreclosure can prevent a messy and expensive foreclosure proceeding from occurring. Borrowers like the deed in lieu approach because they can get out of paying their mortgage with no strings attached. All they have to do is simply hand the keys of the home over to the lender and walk away.
Sidenote: Check out our article on avoiding foreclosure by obtaining mortgage protection insurance. Compare quotes on a mortgage protection quote using our quick form.
This approach benefits the lender as well. Not only will accepting the deed be easier and faster than going through the foreclosure process, but it will also allow the lender to gain control of the house immediately. The only downfall is that the lender will have to put the house on the market by itself.
But what if you’re not ready to part with your home? While a deed in lieu of foreclosure is a great option for homeowners looking to avoid messy foreclosure proceedings, there are others alternatives:
The above options allow you to compromise with your lender about your mortgage while still being able to keep your home. Lenders understand the importance of a home and are willing to listen to what you have to say.
Keep in mind that there is no guarantee that your lender will agree to a deed in lieu of foreclosure. Communicate with your lender to ensure the best possible outcome for both parties. Your home is one of the most important investments you’ll ever make, so make sure you take care of it. If you’re on the verge of not being able to pay your mortgage, contact your lender before the problem escalates. If you are unable to come to a compromise, however, a deed in lieu of foreclosure can relieve you of the stress and headaches that occur during foreclosure proceedings. Compare mortgage protection quotes.
Published: Friday 18th September 2009
