Complete, ready-to-be-signed legal documents. Emailed to you in about an hour.
billdietrich.me
Worry totally free residential or commercial property deed transfers. Gotten ready for you today by a Texas accredited lawyer.

Ready-to-be-signed documents

Prepared in about an hour

Secure online payment

If the individual you offered residential or commercial property to on an owner finance loan no longer desires the residential or commercial property or can no longer pay for the residential or commercial property, a Deed in Lieu of Foreclosure may be a great option to take the residential or commercial property back and cancel the loan.

If you have actually a secured real estate loan, and the individual who owes you the cash does not pay the loan, you may need to foreclose your lien by selling the residential or commercial property at public auction. The money gotten at the auction is used to the loan.

A foreclosure can be expensive and could lead to a lawsuit or personal bankruptcy.

Good to know: An alternative to a public auction foreclosure is a Deed in Lieu of Foreclosure. The debtor merely transfers the residential or commercial property back to the lending institution and the lending institution cancels the financial obligation. This is sometimes referred to as a "friendly foreclosure" or a "voluntary foreclosure." It can prevent claims and bankruptcy.

Basically, the customer merely provides the residential or commercial property back. The debtor signs a Deed in Lieu of Foreclosure, gives you the keys and moves out.

Note: Bear in mind, that many mortgage companies will not accept a Deed in Lieu of Foreclosure. If you owe money to a mortgage company, a Deed in Lieu is seldom an alternative. Regulations may require a mortgage company to foreclosure even though the Borrower no longer desires the residential or commercial property and does not live in the residential or commercial property any longer.

On the other hand, if you owe money to a good friend, household member, or a personal lending institution, you may have the ability to move the residential or commercial property back to the lender and cancel the financial obligation using a Deed in Lieu of Foreclosure.

But all parties, Lender and Borrower need to agree. The lender must consent to accept the residential or commercial property AND the customer need to accept move the residential or commercial property, return the keys, and vacate the residential or commercial property.

Without this mutual agreement, there can be no legitimate Deed in Lieu of Foreclosure. A Debtor can not just send by mail the mortgage business a Deed in Lieu of Foreclosure and anticipate the loan to be canceled.

A Debtor might purchase a Deed in Lieu of Foreclosure, sign it and mail it, however the mortgage business can contradict the deed and continue with the foreclosure and eviction procedure. It is a waste of money for a Debtor to pay for a Deed in Lieu of Foreclosure without first getting the Lender's written authorization.

Good to know: Private loan providers may choose a Deed in Lieu of Foreclosure because they get the residential or commercial property back rapidly without threat of being taken legal action against or having the borrower file bankruptcy. In this case, the Borrower should let the Lender prepare and spend for the Deed in Lieu of Foreclosure.

Borrowers generally prefer to use a Deed in Lieu. It might keep the loan default off of their credit reports and it may avoid an expulsion. The Borrower and Lender can just settle on an organized move out of the residential or commercial property.

Good to understand: Sometimes the parties may accept convert the loan to a rental arrangement. The Borrower transfers the residential or commercial property back to the Lender and then leases it from the Lender.

deed in lieu

The term "Deed in Lieu" is just a shorter method of stating Deed in Lieu of Foreclosure. Homeowners consent to sign a deed in lieu to prevent foreclosure. When a seller accepts this deed, the homeowner is no longer bound to repay the .

What is Deed in Lieu of Foreclosure

A Deed in Lieu of Foreclosure is a complicated document and should be prepared by a legal representative. This is an official legal document utilized to surrender property residential or commercial property from the Buyer back to the Lender or Seller.

A copy of the Promissory Note and Deed of Trust which was signed by the Borrower and which is being canceled will both require to be described in the Deed in Lieu of Foreclosure.

By signing the Deed in Lieu of Foreclosure, the Borrower is legally moving title to the residential or commercial property back to the Lender in exchange for the cancelation of the unpaid balance owed on the Promissory Note secured by the residential or commercial property.

By accepting the Deed in Lieu of Foreclosure, the Lender is lawfully accepting the residential or commercial property as payment completely of the unsettled balance due on the promissory note.

Deed in Lieu of Foreclosure in Texas

Using a Deed in Lieu of Foreclosure in Texas, the Lender maintains the right to carry out a "Friendly Foreclosure" after accepting the Deed in Lieu if other liens are discovered on the title to the residential or commercial property. These other liens might be 2nd liens, home improvement liens, judgment liens, child assistance liens and tax liens.

If other liens are discovered on the title to the residential or commercial property, the Lender with a Deed in Lieu of Foreclosure maintains the right to foreclosure its lien on the residential or commercial property which must "eliminate" or remove any liens filed after the Lender's lien

Other liens may consist of the following:

Federal Tax Liens Judgment Liens Mechanic's Lien Home Equity Liens

Even if a foreclosure is needed after the Lender accepts a Deed in Lieu to get rid of liens or clear title, the fees for the foreclosure need to be considerably less because the Borrower has actually agreed not to contest or otherwise challenge the foreclosure. Also, the Borrower should not be able to apply for Federal Bankruptcy Protection to stop the sale of the residential or commercial property.

An objected to foreclosure on a loan not owned by a mortgage company may cost approximately $1500 or more. If the Borrower files a claim to stop the foreclosure, or declare Federal Bankruptcy Protection, the legal charges along could increase, plus the Borrower will remain in the residential or commercial property without spending for the residential or commercial property.

A Deed in Lieu of Foreclosure costs $350. County recording charges are usually about $38.

Deed in lieu of foreclosure gotten ready for $350

Do you have concerns about a Deed in Lieu of Foreclosure? Email lawyer Scott Steinbach straight at scott@texaspropertydeeds.com. Or call 972-960-1850.

R. Scott Steinbach is licensed in the state of Texas. Board Certified by the Texas Board of Legal Specialization in Residential Real Estate Law. AV Preeminent ranked by Martindale-Hubble. Peer ranked for Highest Level of Professional Excellence.

Texas Residential Or Commercial Property Deeds is a service of The Steinbach Law Practice.

The Steinbach Law Office is a Texas Real Estate Law Firm. We prepare all documents for any genuine estate transaction in Texas.