San Fernando Valley Deed in Lieu Attorney

What is a deed in lieu?

A deed in lieu of foreclosure is when the homeowner gives the ownership of their home back to the lender, with the subsequent sale of the home by the lender.  The borrower requests in writing to the lender that this transaction be done.  As in a short sale, the lender most always agrees to forgive the balance of your loan.

A deed in lieu is an option to foreclosure and to filing for bankruptcy.  The main advantage is that it allows the borrower to quickly get out from under the debt he has for the loan he can no longer repay.  It will be less damaging to the borrower's credit than a foreclosure, and spare him the humiliation and emotional stress of being foreclosed upon.  An advantage for the lender is that he will save money due to not having to undergo the lengthy foreclosure process.  Sometimes the lender may allow the borrower to remain in the home for some time, which can prevent the home from being damaged due to retaliation on the part of the borrower if they feel they have been evicted unfairly.

Hiring an Attorney to Help With the Deed in Lieu

The deed in lieu process calls for both borrower and lender to sign an agreement laying out the terms of the agreement.  This agreement states that the lender will not foreclose on the borrower, and will also forgive any deficiency.  The deed turns ownership of the home to the lender.  The loan is then considered to be paid in full, and the borrower receives paperwork that cancels the debt and verifies that the lender waives their right to request the unpaid debt (deficiency) if the sale price is less than the loan when the property is sold - a crucial point. 

The deed in lieu process can be complicated.  It is important that you hire a qualified San Fernando Valley bankruptcy lawyer from the Law Offices of John Ribarich to make sure that all of the legal documentation and necessary paperwork is included and correct.  We have helped many clients navigate through their financial crises and come out with their heads above water.

Contact an experienced San Fernando Valley Deed in Lieu Lawyer to ensure the process move swiftly and is done correctly.