In the last few months here in Michigan, the professional short sale negotiators that we work with have we noticed a growing trend with lenders working with the loans from distressed homeowners approaching foreclosure. In the case of defaulted loans, lenders seem to be aggressively pursuing the sellers in an effort to get them to sign a deed-in-lieu of foreclosure. Whatever the reason, deeds-in-lieu are increasing in popularity around here.
Now at first a deed-in-lieu of foreclosure might sound appealing. Here is how it works. Your lender might offer you a few thousand dollars to vacate, clean up the house and sign the house over to them. You may rationalize that you’ve missed a few payments and you’re pretty sure you can’t afford to keep the house no matter what sort of payment plan they present to you. They’re offering to take care of the house for you AND give you some cash to move. Sounds pretty good right? Almost too good to be true? Well that’s because it may be too good to be true. There may be long term implications which are important to understand.
A deed-in-lieu of foreclosure is “legalese” for what might be called a “voluntary foreclosure”. When a distressed homeowner accepts a deed-in-lieu of foreclosure, it is likely that your credit report will take the same hit as if it was a standard foreclosure. Foreclosures can stay on your record for up to 15 years and may prevent you from another home purchase for many years. Another thing to be aware of is that the deed-in-lieu of foreclosure MAY NOT waive your responsibility to pay back the full balance of the loan. So, it is important that you COMPLETELY UNDERSTAND what is being proposed and completely understand the the long-term effects.
Before you agree to such a permanent outcome, let us help you check out how you may be able to stop your foreclosure
and avoid damaging your credit for such a long period.
Phone: (269) 350-5514. CLICK HERE TO EMAIL US.
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The Veenstra Team specializes in helping homeowners STOP Foreclosure, and short sales in Kalamazoo Michigan.
Contact the Veenstra Team to STOP Foreclosure and short sales in any of the communities surrounding Kalamazoo; including Kalamazoo short sales, Portage short sales, Mattawan short sales, Oshtemo short sales among others. Of course, we are also able to help home buyers in the greater Kalamazoo area and home sellers in the greater Kalamazoo area purchase or sell any Kalamazoo homes, Kalamazoo income property, Kalamazoo Lake Homes, Kalamazoo Executive Homes, or Kalamazoo resort homes. We offer specialized services for Kalamazoo senior citizens and children with aging parents seeking Kalamazoo real estate information. We also offer free Kalamazoo relocation packets, Kalamazoo tours and specialized services for people who are moving to Kalamazoo. For families moving anywhere else in the US or Canada, we offer Free Nationwide Relocation Services and free REALTOR referral.
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