Is it best to complete a deed in lieu rather than a foreclosure? 17 Answers as of June 07, 2011

After you file bankruptcy is best complete a deed in lieu rather than a foreclosure if you no longer can afford the mortgage payment and do not what the property?

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Jackson White, PC
Jackson White, PC | Spencer Hale
If the bank will accept a deed in lieu, this would certainly be faster than waiting for the bank to foreclose. The bank does not have to accept it though.
Answer Applies to: Arizona
Replied: 6/7/2011
Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
A Deed in Lieu is a better option than foreclosure. It is a good idea especially when foreclosure may take a while and there could be other debts adding up, like property taxes, home owners association fees or fines from the Town/City for failing to keep the property in good repair.
Answer Applies to: New Hampshire
Replied: 6/7/2011
Daniel Hoarfrost, Attorney at Law
Daniel Hoarfrost, Attorney at Law | Daniel Hoarfrost
Many people seem to think that a deed in lieu is less of a blemish on your credit than allowing foreclosure.A short sale is considered even better.
Answer Applies to: Oregon
Replied: 6/7/2011
The Northwest Debt Relief Law Firm
The Northwest Debt Relief Law Firm | Thomas A McAvity
You may have a much easier time purchasing another residence in the next couple of years if you complete a deed in lieu rather than allow the home to go through the foreclosure process.
Answer Applies to: Oregon
Replied: 6/7/2011
Apple Law Firm PLLC
Apple Law Firm PLLC | David Goldman
There are so many issues to consider, you really need to discuss this with a Foreclosure lawyer who is familiar with bankruptcy. You need to consider the type of bankruptcy, whether the debt was reaffirmed, who is on the note, do others have liability and many other issues before making a decision.
Answer Applies to: Florida
Replied: 6/6/2011
    Rosenberg & Press
    Rosenberg & Press | Max L. Rosenberg
    Deed in lieu is a better option than foreclosure for your credit report. However, I prefer a short sale to deed in lieu. For more information please feel free to contact me. Thanks for tuning in!
    Answer Applies to: Connecticut
    Replied: 6/7/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    A foreclosure is worse for future credit than a deed in lieu of foreclosure. However, when there is a bankruptcy already filed the advantage may be more theoretical than real, since a bankruptcy stays on your credit report for ten years.
    Answer Applies to: California
    Replied: 6/7/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    Most lenders will not allow you to do one. Even if they will, see a lawyer. It may or may not be your best choice.
    Answer Applies to: Georgia
    Replied: 6/7/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    A deed in lieu of foreclosure is usually not an option because it has to be accepted by the bank and most banks will not accept it for many reasons too complicated to explain here. If you can get the bank to accept one and want out quickly then that is usually a good option.
    Answer Applies to: California
    Replied: 6/7/2011
    The Law Office of Brian Nomi
    The Law Office of Brian Nomi | Brian H. Nomi
    Yes. Most banks will not accept a deed in lieu, however, until after you've at least tried a short sale.
    Answer Applies to: California
    Replied: 6/6/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    Probably not. If the bank will accept a deed in lieu, then fine. That would eliminate post-bankruptcy HOA costs, insurance, taxes, etc. But after filing bankruptcy you're no longer responsible for paying the mortgage or for paying anything still due after foreclosure (in a Ch. 7).
    Answer Applies to: Virginia
    Replied: 6/6/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    In most cases it probably doesn't matter.
    Answer Applies to: Virginia
    Replied: 6/6/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    The lender will not accept the deed in lieu. If you are still in the house stay there until the foreclosure. You could save money doing that and would have the funds you need to move.
    Answer Applies to: California
    Replied: 6/6/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Depends on whether the lender will accept a Deed in Lieu rather than a proceed through a foreclosure. If they will, a Deed in Lieu would be better on your credit.
    Answer Applies to: California
    Replied: 6/6/2011
    Law Offices of Michael T. Krueger
    Law Offices of Michael T. Krueger | Michael Krueger
    It depends on what kind of bankruptcy you've filed. If you originally filed a chapter 13 and you are "keeping current" on your home, you can file an amended plan to surrender your home through bankruptcy. You will need the trustee's permission. If it is within 6 months of your chapter 7 filing you may be able to amend your chapter 7 to surrender the property.
    Answer Applies to: California
    Replied: 6/6/2011
    Dearbonn Law Offices
    Dearbonn Law Offices | Ajibola Oluyemisi Oladapo
    A deed in lieu would be the better option.
    Answer Applies to: Washington
    Replied: 6/6/2011
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