DEED IN LIEU OF FORECLOSURE: WHAT IS IT?

SERVICE: The Law Offices of Sulaiman & Associates will conduct an in-depth study of all the documents and the specific narrative of the Client/Borrower to discover what is the best course of action to be taken in regards to a Deed In Lieu Of Foreclosure Strategy for the Client/Borrower. A Deed In Lieu Of Foreclosure is similar to a Short Sale that once completed the Borrower/Homeowner no longer will be the owner of the subject property. The Firm’s goal is to educate our Clients and with our advice and counsel guide our Clients. We are committed to researching, formulating and finally executing the best strategy for our Clients. This is our Commitment to all our Clients.

QUESTION: What is a Deed-In-Lieu Of Foreclosure?

ANSWER: DEED-IN-LIEU OF FORECLOSURE: A Deed In Lieu of Foreclosure is a voluntary transfer of the property to the Lender in full satisfaction of the amount owed. By accepting the Deed In Lieu of Foreclosure, the Bank, in most instances, releases the Borrower/Homeowner from personal liability on the loan also known as a deficiency. Commonly, Banks will not accept a Deed In Lieu of Foreclosure if there are other liens on the property. In our practice, we have been able to secure Deeds In Lieu of Foreclosure by settling with the Secondary Lender and other lien holders, effectively clearing title for the Lender to facilitate the transfer. It is an intricate process and requires a full review of your file to come to a conclusion if this is even a good option for you.

DESCRIPTION:

A Deed In Lieu of Foreclosure is the result of a negotiation with the Lender. The Borrower must convince the Lender that it is in the best interests of the Lender to allow a Deed In Lieu of Foreclosure to take place. The Lender typically loses between $20,000 and $70,000 per foreclosed property that the Lender must take back through a completed Judicial Foreclosure. As with Short Sales, there are far too many variables to list as to what impacts whether a Deed In Lieu of Foreclosure is an option. One of the most important issues for conducting a proper Deed In Lieu of Foreclosure is at which point the Borrower attempts to try to complete the Deed In Lieu of Foreclosure, in the beginning, middle or end of the foreclosure process. The benefit to the Lender is that it does not have to continue the foreclosure proceedings to the end. The benefit to the Borrower is that there may be no deficiency judgment from the Lender if there was only one loan associated with the subject property. However, in the recent past most homes were purchased with two loans and the Secondary Lender will release the lien only if there is some financial benefit to the Secondary Lender. Usually the Secondary Lender requires the Borrower to agree to pay them something towards the balance owed. The obvious negative result of the Deed In Lieu of Foreclosure to the Borrower is that the Borrower no longer owns the property, and therefore will no longer be able to possess the home.

A Deed In Lieu of Foreclosure, to a very large degree only benefits the Lenders. The Lender requires a clear title. The foreclosure process is the manner by which the Lender secures clear title. In the event the subject property has more than one loan, as most loans now have, or there are other liens on the subject property, the Borrower, or their Attorneys are typically responsible for removing those liens prior to the Deed In Lieu of Foreclosure taking place.

Our Firm is qualified in properly prosecuting a Client’s instruction to complete a Deed In Lieu of Foreclosure in a timely and professional fashion. Unless a Deed In Lieu of Foreclosure is part of the practice of the Attorney or Realtor you are working with, please be aware that they are likely wasting valuable time, and may do you harm if they are not telling you up front that you may be still liable to the Secondary Lender. This is a very highly specialized field, and proficiency with the Deed In Lieu of Foreclosure process comes after years of experience working with Lenders. There is no typical Deed In Lieu of Foreclosure, and the procedures in securing them are as varied as the amount of Lenders who lend.

Each Lender has a different procedure for conducting a Deed In Lieu of Foreclosure. Again, once the Deed In Lieu of Foreclosure is complete the Borrower/Homeowner will no longer own the property and may actually owe money to the Lenders as part of the settlement if not prosecuted correctly. Please hire competent counselors to complete a Deed In Lieu of Foreclosure and check their credentials and how find out up front how a Deed In Lieu of Foreclosure may affect you before you take on this time consuming process that may or may not work, that will not allow you take money through the equity that is in your property and that can leave you without a home.

Many of our Clients have invested valuable time and resources in trying to secure a Deed In Lieu of Foreclosure when they should have been fighting to save their home. Please take the time to find and speak to the most qualified people in this Specialized Field of Law. Contact us today at (630) 575 – 8181 for an initial consultation with an Illinois Licensed Attorney.

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THE LAW OFFICES OF SULAIMAN & ASSOCIATES, L.L.C. PROVIDES CONSUMER INFORMATION ABOUT THE LAW DESIGNED TO HELP CONSUMERS SAFELY INFORM THEMSELVES OF THEIR OWN LEGAL NEEDS. BUT LEGAL INFORMATION IS NOT THE SAME AS LEGAL ADVICE, WHICH IS THE APPLICATION OF LAW TO AN INDIVIDUAL'S SPECIFIC CIRCUMSTANCES. ALTHOUGH WE GO TO GREAT LENGTHS TO MAKE SURE OUR INFORMATION IS ACCURATE AND USEFUL, WE RECOMMEND YOU CONSULT A LAWYER TO ADDRESS THE NEEDS OF YOUR PARTICULAR SITUATION. PLEASE CONTACT OUR OFFICE AT (630) 575-8181 OR EMAIL US AT INQUIRY@SULAIMANLAW.COM FOR COPIES OF THE INFORMATION FOUND HEREIN OR TO SCHEDULE A CONSULTATION WITH A LICENSED ILLINOIS ATTORNEY. THANK YOU FOR YOUR KIND COOPERATION AND UNDERSTANDING.