Deed in Lieu of Foreclosure in Florida: Is It Right for You?
Once the Florida foreclosure process begins, it can feel like you have lost control. The court process is frustratingly fast and often ruthless. The financial stress of falling behind on mortgage payments can complicate all portions of your life. When it seems that foreclosure is inevitable, you may wonder if there are any foreclosure alternatives. One option to avoid foreclosure is the deed-in-lieu process. What is a deed in lieu of foreclosure? Attorney Carlos M. Amor has the answer to that question.
What Is a Deed in Lieu of Foreclosure?
A deed in lieu of foreclosure is an option that may immediately end the foreclosure process. When you agree to this process, you will voluntarily transfer your deed to the mortgage holder. In return, the mortgage holder will release the mortgage, meaning you will no longer owe any money to the lender. This process does not involve selling your home. The lender becomes the new owner of your home, and if they want to sell it, they are fully responsible for that process.
This process may seem similar to having your home foreclosed on, and, in many ways, it is. However, it offers some advantages over foreclosure. When you agree to this process, you prevent the lender from having to spend time and resources pursuing a foreclosure. Typically, lenders will offer some compensation in return for this benefit. The bank may agree to:
- Let you live in the house longer than during the foreclosure process
- Provide relocation assistance
- Forgive part or all of your deficiency
- Complete the process on a timeline that is best for you.
Furthermore, this process will usually be less detrimental to your credit score than a foreclosure.
If nothing else, agreeing to a deed in lieu of foreclosure can help you avoid the potentially lengthy and unpleasant foreclosure process.
Is a Deed in Lieu Right for You?
When discussing foreclosure alternatives with your foreclosure defense attorney, you should consider the following factors to determine whether a deed in lieu of foreclosure is right for you:
- How much equity you have in your property
- Why you are defaulting on your mortgage
- Your overall financial situation
- Whether your property is subject to other liens or encumbrances.
These factors will determine whether you are eligible to take advantage of this option. If there is no way you could feasibly pay off your mortgage but you don’t owe any other debts against that mortgage, you will be eligible to use this process.
It is typically your best option when the lender is willing to work with you in some way. If, for example, they agree not to seek a deficiency judgment against you, this option is probably optimal for both parties. However, if you potentially have the means to pursue other options or the equity of the property is very high, you probably don’t want to pursue this course of action.
Are you facing foreclosure in Florida with no reasonable way to save your home? Contact The Law Office of Carlos M. Amor, P.A. for foreclosure help at 954-453-7200.
The Deed in Lieu Process in Florida
While the process may seem relatively simple, you can’t simply give your deed to the bank and walk out free and clear. The legal red tape needs to be respected. You should hire Florida real estate attorney Carlos M. Amor before making any decisions. Otherwise, the process could trip you up.
To start the process, typically, you want your attorney to approach the lender and offer to negotiate on your behalf. You can’t unilaterally determine if you will give the lender the deed in lieu of foreclosure; the lender must also agree to it. Furthermore, since the benefits of this process are minimal compared to a foreclosure, unless the lender agrees to offer additional benefits it probably isn’t worth doing. An experienced negotiator like attorney Carlos M. Amor will fight to get you fair compensation.
You also want an experienced lawyer representing you because this process has legal and tax consequences. Transferring a deed requires a lot of paperwork. At the very least, your lawyer should review it before you sign anything. It is even better if attorney Carlos M. Amor is involved in drafting the paperwork.
Similarly, there are tax consequences for transferring property to another party. It is best to get professional advice about those consequences, so you are prepared to deal with them immediately.
Why Choose The Law Office of Carlos M. Amor, P.A.?
Attorney Carlos M. Amor has more than 15 years of experience representing foreclosure clients in Florida. He has helped hundreds of satisfied clients navigate the process, obtaining results that helped them recover financially. Before negotiating with the lender, attorney Carlos M. Amor will discuss your case with you and determine what you need most from agreeing to a deed in lieu of foreclosure. By prioritizing your needs, he may be able to better serve you throughout the process.
Every case is different, but attorney Carlos M. Amor has a long history of helping clients get better results through aggressive negotiation with lenders.
Free Consultations
Are you unsure whether attorney Carlos M. Amor can help? The good news is you don’t have to decide without talking to him first. He offers free consultations to every potential client. You can take advantage of this free consultation over the phone, in person, or via a video meeting. Ask as many questions as you like before deciding how to proceed.
Contact Attorney Carlos M. Amor in Florida Today
Every three months, roughly 10,000 people in Florida face foreclosure. If you are one of them, you need the help of an experienced real estate lawyer to explore options other than the foreclosure process.
Don’t wait to talk to a lawyer after being served with a breach letter in Florida. Contact The Law Office of Carlos M. Amor, P.A. as soon as possible at 954-453-7200 to schedule a free consultation.
