Deed-in-lieu Requirements

Deed in Lieu of Foreclosure Requirements Explained by Jacksonville Foreclosure Defense Lawyer

If you’re a homeowner struggling to maintain your loan payments while keeping your finances afloat, it might be a wise move to use a deed-in-lieu of foreclosure to satisfy a loan in-default and forgo foreclosure proceedings. You may inquire here at The Law Offices of Justin McMurray, P.A. to consider your deed in lieu Jacksonville options.

A deed in lieu of foreclosure in Jacksonville offers many advantages to both the lender and the borrower. As the borrower, you are immediately released from most (if not) all personal indebtedness that are associated with the defaulted loan. You also avoid the social and public notoriety of a foreclosure, and you will receive terms that are more generous than you would in a foreclosure. A Jacksonville deed in lieu has less impact on your credit score than a foreclosure. The lender, on the other hand, benefits from reduced cost and length of the repossession proceedings and lower incidence of borrower revenge such as vandalism of the property and metal theft before eviction.

There are certain requirements and qualifications to be met for a borrower to be eligible for a deed in lieu of foreclosure in Jacksonville. In most cases, lenders will not act upon a Jacksonville deed in lieu without trying to work out a solution where in you can keep or sell the home. Borrowers who choose the deed-in-lieu route, often don’t qualify for loan modification, refinance, forbearance, short sale or deferment of the property. For the lender to determine your eligibility for this deed instrument, they must first analyze your assets, your income, financial hardship, as well as the overall condition of the home. Typically, you must prove to the lender that you can no longer afford the home or they can better make use of it by taking ownership back instead of selling it.

To qualify for a deed in lieu Jacksonville, you must follow the following criteria:

  1. The home loan must be in default before your lender can offer and accept this deed instrument. The lender will generate the official notice and then file it with the courts. This is often triggered by at least three (3) missed payments.
  2. The loan balance must exceed the worth of the home, which makes impractical to sell since the sale won’t be able to repay the loan.
  3. You must also be able to present a clear and marketable title to your lender.