If a homeowner is behind on the mortgage payments and is receiving collection calls, they may feel like there’s no choice but to accept what’s coming. However, before giving up, the homeowner should know they do have choices, what they are, and how they can put those options to work. One option is to perform a deed in lieu of foreclosure.
What is Foreclosure?
In foreclosure in Hamilton OH, the lender is calling in the loan and informing the homeowner that they will take possession of the property. A mortgage is a deed the homeowner signs giving the lender an interest in the home. If the homeowner defaults, the bank can take the home. Foreclosure is a legal term describing the process a lender follows to repossess and sell a home to recoup their losses.
A Deed in Lieu May Be an Option
Deeds in lieu are a foreclosure alternative that has been available for a long time. They are negotiated settlements between a borrower and a lender. The borrower signs away the title to the home, and the lender stops foreclosure proceedings. The deed can save the lender on foreclosure costs, and it can help a homeowner keep a better financial history. However, a deed in lieu can still hurt the homeowner’s credit score.
Deficiency Judgments
In some jurisdictions, lenders can sue borrowers for the difference after a deed in lieu or a foreclosure in Hamilton, OH. As part of negotiations, the homeowner should get the lender to agree to release them from deficiency repayments, perhaps in exchange for the return of the home in good condition.
Homeowners Should Know Their Options During Foreclosure
When a homeowner is in default, knowing which options are available is important. As soon as financial troubles start, the homeowner should call the lender’s loss mitigation team to find out which alternatives are available. If the choices are confusing, a foreclosure attorney can provide help and case-specific legal advice. Foreclosure can be frightening, but homeowners do have options. By asking for help from Domain and staying informed, borrowers can make it through the foreclosure process relatively unscathed.
