December 10th, 2008
If a Notice of Default is already filed, you can, of course, sell your home. But first get a few Realtors to give you an opinion of value. You can also consider a short sale if the house is worth less than what you owe on it. This does affect your credit but not as seriously as it does with foreclosure.
Or, you can sign a Deed-in-Lieu of Foreclosure, in essence deeding the house back to the bank with a properly prepared and notarized deed. The lender then effectively forgives the mortgage, canceling the foreclosure action. As far as your credit score goes, however, this action is said to be as damaging as a foreclosure. However, you may be able to remain in the home until you can find another place to live if you ask for these terms up front. Read the rest of this entry »
Tags: deed in lieu, Deed in Lieu of Foreclosure, deed my home, notice of default, quit claim deed
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September 22nd, 2008
By Moe Bedard : Understanding Market Value Perception and Deeds in Lieu of Foreclosure
Since modern finance has advanced to a quantitative approach to valuing everything from stocks to groceries, it may seem that objectivity rules in today’s market. However, if you take a deeper look behind these models you find an important element of human subjectivity.
John Maynard Keynes, the famous economist who helped organize the Marshall Plan to rebuild Europe in the wake of the Second World War, had a particularly keen insight into this process that remains as relevant today as it was then. Writing in his book, A General Theory of Employment Interest and Money, Keynes imagined trying to predict the market as akin to a contest to select the winner of a talent competition. Keynes wrote:
“A…sophisticated contest entrant, wishing to maximize his chances of winning a prize, would think about what the majority perception…is, and then make a selection based on some inference from his knowledge of public perceptions.” Read the rest of this entry »
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September 22nd, 2008
Understanding what a deed in lieu of foreclosure will do to your credit is important in deciding if a deed in lieu is right for you.
As a result of the financial decisions that you have made over your lifetime, there is a single number that, above all, comes to define how potential lenders will evaluate you. In the background of the joys of life, the triumphs along with the hard lessons, credit scores can be harsh judges of your financial past, often lacking context, which makes your approach to loans even more important. While your income and assets are important in helping guide your economic decisions, lenders, above all, rely upon your credit score to establish a baseline understanding of your finances.
Just as a complex series of interactions comes to determine that piece of data, you should also consider making important financial decisions with credit implications in mind. If you’re facing potential difficulties with your current home mortgage, one of the options potentially available to you is a deed in lieu of foreclosure which allows you to, essentially, transfer ownership of your home to satisfy a loan contract. While modern finance may seem harsh in light of the challenges of everyday life, you can use its instruments to regain control over your own financial freedom. Read the rest of this entry »
Tags: deed in lieu, Deed in Lieu of Foreclosure, Deed in Lieu of Foreclosure & Credit
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September 8th, 2008
A quitclaim deed is a legal instrument that acts to transfer property interest from one individual (the “grantor”) to another (the “grantee”). The deeds may be applied to physical properties including homes, land or office buildings.
In contrast to standard real estate sale (warranty) deeds, quitclaim deeds do not warranty the covenants that the grantor’s ownership claim is legally valid or free of 3rd party liens, as required by common law. In particular, a general warranty deed contains present and future covenants that are granted to the buyer. The Read the rest of this entry »
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September 8th, 2008
For home borrowers (”mortgagors”) facing foreclosure, a deed in lieu of foreclosure provides an alternative solution to the standard default process. In particular, the deed grants the lender (the “mortgagee”) full rights to the property title to satisfy the conditions of the loan. Such agreements are a common form of mortgage contract settlement. In general, a deed is a right granted by a legal contract based upon mutual agreement; therefore, a deed-in-lieu must be based upon voluntary agreement in good faith. Read the rest of this entry »
Tags: deed in lieu, Deed in Lieu of Foreclosure
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