Did someone tell you a deed in lieu might be a good option for your situation? And you responded that you would consider it — all the while thinking, “In lieu of what?”
The quick answer is: in lieu of foreclosure. And a deed in lieu is, in fact, a quick answer to the problem of a mortgage default —quicker, that is, than a drawn-out foreclosure proceeding. In a deed in lieu of foreclosure arrangement, you agree simply to sign over your property to your mortgage company in exchange for an immediate release of your debt. You still lose your home but your credit rating suffers less damage because your mortgage is recorded as paid off rather than defaulted.
Your lender must agree to the arrangement, of course, but remember the lender has even more incentive than you do to avoid foreclosure, which would cost a lot more and achieve the same result.
The main elements of a deed in lieu of foreclosure are as follows:
A Florida real estate attorney experienced in hardship negotiations can help you determine whether deed in lieu is, in fact, the best option for you.