In the current economy we are constantly barraged with foreclosure statistics. Sometimes it seems like homeowners have two options: continue to hold onto a house or let the house go into foreclosure.When you work with the real estate attorneys at Shadrix, Lane & Parmer, P.C., you will learn that there are numerous alternatives to foreclosure. Some are familiar, like short sales and bankruptcy. A less familiar yet effective one is a deed in lieu of foreclosure.
What is a Deed in Lieu of Foreclosure?A deed in lieu of foreclosure allows a borrower to convey his or her interest in a property to the lender. The advantages over foreclosure are that:
- The borrower may be immediately released from most or all of the debt;
- The borrower's credit may be less affected;
- It is often faster; and
- There are fewer parties involved