Deed in Lieu of Foreclosure in Florida
The U.S. is facing a tough economy. Florida, in particular, has seen a rise in housing woes and angst on a number of fronts. If you are facing the possibility of foreclosure, know that there are options available to you. One such option is a “deed in lieu of foreclosure.”
A deed in lieu of foreclosure essentially means that you choose to surrender the deed to your mortgage over to your lender in lieu of the lender foreclosing on the home. This can be a viable option to many, and has been used as an alternative to foreclosure by many Florida homeowners. This article aims to serve as an introduction to this topic, so you can begin to think about whether this might be a viable option for you.
Deed in Lieu of Foreclosure Process
If you pursue a deed in lieu of foreclosure, you should expect to relinquish legal ownership of your home to your mortgage lender. In exchange, the lender would not put you through the foreclosure, and might even offer some financial relief to you. Relinquishing your legal right to the home will typically result in your financial obligations to the property being forgiven.
This can be useful if you find yourself losing a job, losing a loved one, or otherwise finding yourself unable to make payments on your mortgage. If you are facing financial issues and are behind on your mortgage, lenders can provide you with some options.
Pros and Cons of a Deed in Lieu of Foreclosure
Like anything in life, there are pros and cons to pursuing a deed in lieu of foreclosure. However, if you find yourself facing the possibility of foreclosure, it can be worthwhile to understand this alternative that could potentially serve you.
Some of the pros and cons of a deed in lieu of foreclosure include:
Pros
- The process will likely wipe your obligation to pay off a mortgage debt.
- You will not go through the foreclosure process, which can be very public.
- You avoid the responsibility and cost of selling your home.
Cons
- Pursuing a deed in lieu of foreclosure could impact your ability to attain a new mortgage in the future.
- A deed in lieu of foreclosure could have negative tax implications
- You may not be eligible to pursue a deed in lieu of foreclosure, based on your mortgage history
Legal Assistance can be Key
Speaking with a foreclosure defense attorney about your options, to include the potential to pursue a deed in lieu of foreclosure, can save you a lot of time and headaches in the long run. An attorney can review the specifics of your case and help ensure that you choose the path forward that you feel most confident about, that the correct paperwork is filed, properly filled out, and without missing any deadlines.
Whatever foreclosure issues you might be facing, the experienced team at Suncoast Civil Law can help.
Contact Suncoast Civil Law
The experienced Sarasota foreclosure defense lawyers at Suncoast Civil Law have helped clients avoid foreclosure for years. Seek out legal counsel with the knowledge and experience to help you navigate this process and fiercely defend your interests. Contact our office today to learn how our team can start working for you.
Sources:
bizjournals.com/southflorida/news/2023/11/03/miami-condo-trades-in-deed-in-lieu-of-foreclosure.html
bizjournals.com/southflorida/news/2023/10/03/shuttered-charter-school-surrendered-to-lender.html