Tuesday, January 15, 2008

How to Arrange a Deed in Lieu of Foreclosure

Introduction

Many people are finding themselves facing foreclosure right now. One way to avoid foreclosure to is to arrange a deed in lieu of foreclosure. In this transaction, the homeowner offers to give the lender the deed in exchange for cancellation of the debt.

Instructions

Difficulty: Challenging

Things You'll Need

  • Written offer to the lender, stating your wish to voluntarily enter a deed in lieu of foreclosure transaction
  • A real estate attorney

Steps

1

Step One

Plan ahead: research this option well before foreclosure proceedings begin.
2

Step Two

Find a real estate attorney to help you through the process and the paperwork.
3

Step Three

Have the home appraised so that you know the fair market value of the home.
4

Step Four

Offer the deed of your home to the lender in exchange for cancellation of your mortgage debt.

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