Not all defaults result in foreclosure sales. In some cases, a borrower faced with foreclosure may be able to sell the property prior to losing it. A new buyer will arrange new financing and payoff the old loan. A distressed owner may have an incentive to sell even thought the price is below the mortgage balance owed. Since a foreclosure will destroy their credit. Depending on whether or not it is a Buyer's market, it would be an advantage if the home could be sold for less than market value. In many cases, however, the owner cannot afford or is unwilling to sell a home for less than what is owed because they are unaware of the short sale process.

Some borrows are under the impression that they can merely turn ownership over to the lender and thereby satisfy the debt. Some homeowners mail in the keys to their homes instead of making up the mortgage payments or just vacate the home. However, a lender does not have to accept such a transfer in payment of debt. In fact, we have found that due to the enormous amount of foreclosures that the lenders would prefer for the homeowner to sell the house at a discount versus accept a deed in lieu of foreclosure. There is a good chance that if the property went into foreclosure sale, the property may still be liable for the deficiency judgment for the difference.

On the other hand, sometimes lenders accept the transfer. Title to the property goes to the lender in a transaction termed "deed in lieu of foreclosure." When the lender accepts such a deed, the right to a deficiency judgment can be waived.

Cash for Keys- The Lenders are known to pay $500 and up to $5,000 for a Deed in Lieu of Foreclosure. This is a good way to take your dead files and turn them into CASH. The main important factor here is to make sure that the Lender will accept a Deed in Lieu as full satisfaction and will not go after the Seller. Deed of the property to the lender and getting a Seller a Deficiency Judgment does not help the seller.

If you are facing foreclosure and would like to have an expert team negotiate for you with your lender, please contact us today so we can help you stop your foreclosure and quite possibly remove it from your credit so you can go on with your life.