Arranging to provide a mortgage holder with a deed in lieu of foreclosure is generally a last resort to avoiding foreclosure. However, banks and other lenders are seldom open to this option for a variety of reasons. At The Schwartz Law Firm, in Las Vegas, Nevada, our attorneys counsel homeowners about the pros and cons of this alternative to foreclosure. If a foreclosure action has already begun, our firm will fully assess your options and advise you about a course of action.
This option is appealing to homeowners who are in default on their mortgages for several reasons. First, they can eliminate their mortgage obligations without going through the lengthy foreclosure process. Second, the deed in lieu of foreclosure is probably less damaging to a homeowner’s credit rating. Third, it is more private than a foreclosure, which involves public announcements, legal notices and eviction, however, the homeowner still loses the house.
This option is not especially popular with banks and other lenders. Although it may be faster than foreclosure, there are several negatives that limit the usefulness of this transaction from a lender’s viewpoint. First, the bank will own the house and will have to sell it to recover the losses. If the house is worth less than the amount owed, most banks will not even consider this option. Moreover, they will need to insure the home, pay taxes and keep the utilities on. Nonetheless, under the right circumstances this option can serve both parties’ interests.
Other Options for Homeowners
At The Schwartz Law Firm, our lawyers help homeowners explore other alternatives to foreclosure, including:
Although these options are not available in all circumstances, they are all worth considering. Our attorneys have the knowledge and experience to counsel clients on the best options for their unique situation. We do everything possible to help clients avoid a default on a home loan and subsequent foreclosure.
At The Schwartz Law Firm, we assess your unique financial situation, ask the right questions and explain the legal and financial alternatives available in clear language. Contact us to learn more about deeds in lieu of foreclosure and other alternatives to foreclosure.
We have Spanish-speaking staff to assist those who communicate best in Spanish.
"Since the first day we met you, you have taken the pressure from us and guided us through this whole foreign process. Sam and Brian are wonderful and I think that trickles down into the rest of the office staff. I cannot say enough about your law firm and the people in it!!! You were right about everything. Brian was so on it yesterday. I was saying a little prayer the whole time but he is wonderful as well and reassured us everything was going to be ok. He just guided us along, so we knew what to expect."
- Shawn R.
"Schwartz Law firm did an incredible job of handling the sale of our home. They handled our biggest fear of managing the negotiation with the big bank, and simplified what could have been a frightening process for our family. Without their help, I do not believe we would have been able to negotiate the sale of our house in this economic environment. No one should try a workout directly with a bank without their help."
- Bob D.
"I just wanted to say THANK YOU for all of your hard work, organization and vast knowledge in helping us with our bankruptcy. I know we are not completely done yet but I did not want you to go on leave without letting you know what a wonderful help you have been. You are so calm and patient and make us feel like we are the only client you are working on. Your whole office is incredible."
- Shawna R.