Deed In Lieu Of Foreclosure: 5 Things to Know

Free Foreclosure Case Evaluation

Cozmyk Law offers a free evaluation of your case and provides you with all the information necessary to make an informed decision.

1Applicant Info
2Summary Info
3Case Details
4Contact Info

Going through a foreclosure is stressful, and it can have long-lasting consequences for your credit score, your wallet, and even your health. Some people pursue a deed in lieu of foreclosure as an option to avoid the effects of full foreclosure.

5 Things You Should Know about Deed in Lieu of Foreclosure

Before you pursue it, you should know these five important facts.

1. A Deed In Lieu Of Foreclosure Is a Legal Document

This legal document transfers the title (and ownership) of the home to the bank or other lender that holds the mortgage. The name “deed in lieu of foreclosure” means that you will give the lender the deed to your home if they agree to drop the foreclosure proceedings.

2. Choosing A Deed In Lieu Of Foreclosure Can Be Less Damaging Financially

Foreclosures can have devastating consequences that can negatively affect your financial future for years. For example, your foreclosure can reduce your FICO score by 100 points or more, according to Experian. Moreover, a foreclosure remains on your credit score and hurts your credit for as long as 7 years. Many lenders will refuse to work with you as long as the foreclosure remains on your credit score.

While this option does affect your credit score, it can be less damaging to your credit profile than a foreclosure judgment.

3. It Is A Last Resort

While a deed in lieu of foreclosure is better than a full-blown foreclosure sale in Ohio, it still a drastic step that you should consider only after you have exhausted all other options. Your foreclosure defense lawyer can help you explore other options, such as a short sale or a loan modification.

4. It Is More Private Than a Foreclosure

Foreclosures can be financially devastating, and they can also be embarrassing – foreclosures come with a public notice taped to your front door. A deed in lieu of foreclosure is more private and is therefore a better choice for those who have a visible presence in their community or who simply wish to keep their financial struggles private.

5. It can often eliminate a deficiency

Many lenders who accept a deed in lieu will waive a deficiency.  A deficiency arises when you sell a property for less than what is owed.  Normally you would be responsible for paying that difference even if you lose the home.  As incentive, the lender will often agree to waive that.

Contact Cozmyk Law If You Are Facing Foreclosure

For more information on deed in lieu of foreclosure in Ohio, consult with Cozmyk Law. Our foreclosure defense lawyer can help you explore the options to help you avoid foreclosure.

Cleveland, Ohio

6100 Oak Tree Boulevard
Suite 200
Independence, Ohio 44131

Office #: (216) 452-9145
Fax #: (216) 485-2125

Dayton, Ohio *

70 Birch Alley
Suite 240 Building B
Beavercreek, OH 45440

Office #: (937) 314-4297
Fax #: (216) 485-2125

Bethalto, IL *

333 West Bethalto Dr.
Suite C
Bethalto, IL 62010

Office #: (877) 813-0264
Fax #: (216) 485-2125

Cleveland, Ohio*

600 Superior Ave East
Fifth Third Building, Suite 1300
Cleveland, OH 44114

Office #: (216) 452-9145
Fax #: (216) 485-2125

Cincinnati, Ohio*

300 E Business Way, Suite 200
Summit Woods Corporate Center
Cincinnati, OH 45241

Office #: (513) 318-4764
Fax #: (216) 485-2125

Springfield, IL*

920 South Spring Street
Springfield, IL 62704

Office #: (877) 813-0624
Fax #: (216) 485-2125

Toledo, Ohio *

1690 Woodlands Dr
Suite 200
Maumee, OH 43537

Office #: (419) 600-0691
Fax #: (216) 485-2125

Columbus, Ohio *

545 Metro Place South
One Metro Place, Suite 100
Dublin, Ohio 43017

Office #: (614) 636-4692
Fax #: (216) 485-2125

Chicago, IL *

22 West Washington St.
Suite 1500
Chicago, IL

Office #: (630) 560-4471
Fax #: (630) 503-7828

* By Appointment Only

Disclaimer – This website is a public resource of general information concerning our law firm. The website or the associated pages is not intended to be and it is not a source of legal advice. Links on this website are not intended to be referrals or endorsements of the linked entities. No recipient of content from this site, client, whether current or otherwise, should act or refrain from acting based on information at this site. Any and all information on this website is not intended to, nor does it, constitute or establish an attorney-client relationship.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Call now for live help!