Miami Foreclosure Defense Tips: Deed in Lieu of Foreclosure

Deed-foreclosure.jpgDo you face foreclosure? Would you like to dispose of your home? There are many alternatives that should be explored to help avoid a foreclosure. A deed in lieu of foreclosure is one of the alternatives that you should consider.

The Miami lawyers at Alvarez & Barbara, LLP, are on your side. We are experienced trial attorneys who will help you understand your rights and options under Florida and federal foreclosure laws. Contact our law firm today for a free consultation and case evaluation.

What Is a Deed in Lieu of Foreclosure?

A deed in lieu of foreclosure is a legal instrument that allows you to voluntarily give your house or condo back to the bank in exchange for cancellation of your mortgage. In other words, your deed is transferred from you to the bank in an effort to shorten the lengthy and costly process of foreclosing on your home.

In many cases, banks may reserve the right to bring a deficiency action against debtors to collect the difference between the amount they receive from sale of the home and the amount owed on the mortgage. Therefore, take time to talk with a lawyer experienced in Florida real estate law before choosing this option.

Selling Your Home to Escape Foreclosure

A deed in lieu of foreclosure is an option to consider when you would like to stop foreclosure and be released from the debt you owe. It does not affect your credit as significantly as foreclosure and may even lead to a better, negotiated settlement than you could obtain through foreclosure.

In order for you to sign over the deed to your home in lieu of the bank foreclosing on your loan, your mortgage company must voluntarily agree to it. In some cases, banks will only accept a deed if your mortgage debt is more than the current value of the property. However, a deed in lieu of foreclosure is almost always a better option for lenders because it allows them to avoid the expensive and time-consuming foreclosure process.

Our attorneys will help you initiate the process by sending a letter to your lender. Then, we will negotiate an agreement with your mortgage company that meets your current financial needs.
Consider Your Options. Contact Us.

For a free consultation with a Miami lawyer familiar with deeds in lieu of foreclosure, contact Alvarez & Barbara, LLP, today. We represent clients in Miami, Homestead, Hialeah, Coral Gables, and throughout South Florida.