If you can no longer make your mortgage payments, you might believe foreclosure is your only choice. However, there are lots of alternatives. We address three inter-related alternatives on this page: deed-in-lieu of foreclosure, cash-for-keys, and approval judgments.

A deed-in-lieu of foreclosure allows you to negotiate particular legal protections for yourself that are not readily available in a foreclosure action. In addition, by preventing a judgment of foreclosure, less damage is done to your credit. In specific cases, it is even possible to acquire money incentives for selecting a deed-in-lieu of foreclosure.

Sometimes a deed-in-lieu will not be possible due to title concerns, tax concerns, or other factors. In this instance, the parties can consent to a judgment, with a cash payment incentive. Part of the bargain can include the bank's arrangement not to pursue you for a "shortage judgment." This only arises if the worth of the home is less than the judgment amount. That distinction is the shortage, and in Florida (a "option" state), you might be on the hook to pay that sum for approximately twenty years post-judgment. If you go this route, it is essential to check out and think about tax implications.

Some people have equity in their home. That's when the value of the home exceeds the quantity owed. In those circumstances, it may make sense to come to a plan with the opposite to keep their lawyer's costs and expenses as low as possible. As normally, the bank's charges and costs will increase the well balanced owed and decrease your equity.

To best benefit from the benefits supplied by a deed-in-lieu of foreclosure, cash-for-keys, or permission judgment, you must speak with a knowledgeable Hollywood and Fort Lauderdale foreclosure defense legal representative.

At the Law Offices of Evan M. Rosen, we have successfully helped clients to negotiate advantageous deeds-in-lieu, cash-for-keys, and approval judgment arrangements with every major bank and bank law firms. A deed-in-lieu, cash-for-keys, or approval judgment are just a few alternatives we can assist you pursue as part of a strategy to resolve foreclosures. In every case, we make a commitment to supplying you with legal advice on all of your alternatives and to eliminating intensely for you. Putting customer care initially, we will listen to you, deal with you and help you to get the best results possible.

You are welcome to learn more listed below, or you can call us now for an assessment by calling 754-400-5150 or by completing our online form.

What is a deed-in-lieu of foreclosure?

A deed-in-lieu of foreclosure is an arrangement made with your mortgage lender where you agree to turn over the deed to your residential or commercial property and, in exchange, the bank agrees not to pursue a foreclosure action versus you. Essentially, this suggests you voluntarily give the residential or commercial property back to the loan provider. The bank will then report the mortgage financial obligation as pleased, meaning that you are no longer under any legal commitment to pay.

A deed-in-lieu of foreclosure might be available by contract with your loan provider, offered you do not have outstanding tax liens or 2nd liens on your residential or commercial property, such as liens for unpaid property owners' association charges. Liens are claims on the residential or commercial property, and since you need to turn over the deed to your lender in a deed-in-lieu of foreclosure, no one else can have a claim on the residential or commercial property except the bank.

If there are impressive liens on the residential or commercial property, a comparable alternative to foreclosure described as a permission judgment might be pursued. An approval judgment suggests you do not fight the foreclosure but rather you agree that the court needs to enter a judgment of foreclosure against you. A consent judgment speeds up the foreclosure process substantially and is much less pricey and complex for the loan provider. While a permission judgment does more damage to your credit than a deed-in-lieu of foreclosure agreement, it can be structured to offer all the other exact same advantages of a deed-in-lieu, such as waiver of shortage and even a cash buyout element in which the loan provider offers you money to practiced the transaction.

Advantages of a Deed-in-Lieu of Foreclosure

When selecting a deed-in-lieu of foreclosure, the most apparent benefit is that you avoid a judgment of foreclosure on your public record. A judgment of foreclosure can remain on your credit report for 7 years, making it difficult for you to get credit and causing you to be disqualified for certain careers or positions for which a financial background check is carried out. A judgment likewise remains on the official public records permanently. When you turn over your deed, no judgment is entered versus you.

Other benefits are likewise available as an outcome of a deed-in-lieu of foreclosure contract, particularly if you have a skilled Florida foreclosure defense legal representative representing your interests. For example, as part of your deed-in-lieu contract, your foreclosure defense attorney need to probably negotiate a waiver of deficiency. Due to tax ramifications, you might choose to not have a waiver. This is something that will require to be thoroughly checked out before settling your decision.

Because Florida is a "recourse state," loan providers have further recourse after a foreclosure action. If they do not generate adequate funds from a foreclosure sale to pay for the total you owe on the residential or commercial property, along with for their expenses in foreclosing, they can acquire a deficiency judgment versus you for the staying balance owed. These deficiency judgments can be for very significant amounts of cash. They can even more destroy your credit, serve as a lien against you for as long as twenty years and can even result in your incomes being garnished to pay the judgment. With a deed-in-lieu of foreclosure plan, the Law Offices of Evan M. Rosen will negotiate with the bank to pursue terms that are best for you.

Cash for Keys

It is likewise possible for house owners to acquire money incentives for providing up the deed or granting judgment. At the Law Offices of Evan M. Rosen, we have successfully assisted customers throughout Florida to acquire much needed funds as part of this process. Every case is various and cash incentives are negotiated on a case-by-case basis. But the Florida foreclosure defense lawyers at the Law Offices of Evan M. Rosen have been able to successfully work out five-figure cash incentives to homeowners. At a time when you might be struggling economically, these cash payments can go a long method toward you get back on track.

Deeds-in-lieu and cash-for-keys normally just make sense when the residential or commercial property is "underwater." That's when the mortgage balance exceeds the worth of the residential or commercial property. If there is equity, there are another variety of alternatives offered.

Contact Our Hollywood and Fort Lauderdale Foreclosure Defense Attorneys Today

At the Law workplaces of Evan M. Rosen, we treat our clients like we would desire to be dealt with, which includes treating their cases like our own. We delight in assisting our customers comprehend their rights and formulate a strategy that is best for them. Whether that is through a deed-in-lieu, cash-for-keys, approval judgment or having your day in court at trial, we will deal with you to find the best choice for you at an affordable cost. Contact us today at 754-400-5150 or through our online kind to arrange an assessment to discover more.

Let the Law Offices of Evan M. Rosen serve you!