Deed in Lieu of Foreclosure
In recent difficult times, many Americans have experienced financial hardship
and face foreclosure. There are numerous actions that can be taken once
it has been decided or become apparent that repayments cannot be met.
Some of these include filing for
bankruptcy through either
Chapter 7 liquidation or a
Chapter 13 reorganization of debt to reduce or eradicate the liability associated
with your home. If you have someone willing to make an offer on your home, a
short sale is an option that may have benefits. You may also try to negotiate a deed
in lieu of foreclosure.
A deed in lieu is essentially a transfer of the title and ownership of
the property in exchange for the lender cancelling the mortgage. It is
similar to a voluntary repossession. Although this sounds simple enough,
it is often a complex process.
If you are facing foreclosure, you should consult with
The Law Office of Nikki Farris. Our firm has extensive experience in helping families experiencing financial
difficulty. As Butte County bankruptcy lawyers we can provide you with
skilled legal representation to vigorously pursue the best outcome possible
in your circumstances.
Understanding the Process of Deed in Lieu in Chico
As stated, getting a lender to agree to a deed in lieu is usually not a
simple process. In most cases some factors must be present for a lender
to consider a deed in lieu. These include, but are not limited to, the
- The borrower must have experienced a hardship such as a loss of employment
- The borrower must have exhausted other options and financial resources
- The property must be the lender's home. A deed in lieu will usually
not be considered for investment properties.
There are many other requirements that will be made of the lender before
a deed in lieu is granted. Although a complex process, this avenue may
be suitable for some parties. If you are experiencing financial hardship
and are facing foreclosure, our experienced legal team can help you to
take steps toward getting back on your feet.
Contact a Butte County bankruptcy attorney
to discuss how we can help you if you are experiencing financial hardship
and are seeking a deed in lieu of foreclosure.