When a Short Sale is not a viable option, you may qualify for a Mortgage Release; commonly called a Deed In Lieu of foreclosure. This program could help you resolve your delinquency and avoid foreclosure and it offers three exit options.
A Mortgage Release/deed in lieu is where you, the homeowner, voluntarily transfer the ownership of your property to the owner of your mortgage in exchange for a release from your mortgage loan and payments. Options are available (sometimes with a relocation incentive) to help you leave the home immediately; stay in the home for up to three months without paying rent; or lease the home (at market rates) for up to one year. Depending on your situation, you may be required to make a financial contribution to receive a mortgage release.
A Mortgage Release/deed in lieu is an alternative to foreclosure and should be considered if:
- You are ineligible to refinance or modify your mortgage
- You are facing a long-term hardship
- You are behind on your mortgage payments or will fall behind in the near future
- You owe more on your home than it’s worth
- You don’t want to sell your home or haven’t been able to sell your home
- You can no longer afford your home and you are ready to leave
Please note that you may be subject to tax consequences by doing a short sale. Contact us today to see if deed in lieu is an option for you if you are in foreclosure or behind on your mortgage payments.