Complete, ready-to-be-signed legal files. Emailed to you in about an hour.

Worry complimentary residential or commercial property deed transfers. Gotten ready for you today by a Texas certified attorney.

Ready-to-be-signed documents

Prepared in about an hour

Secure online payment
wipo.int
If the person you sold 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 might be an excellent alternative to take the residential or commercial property back and cancel the loan.

If you have a secured property loan, and the individual who owes you the cash does not pay the loan, you may require to foreclose your lien by selling the residential or commercial property at public auction. The money received at the auction is applied to the loan.

A foreclosure can be costly and could result in a suit or personal bankruptcy.

Good to understand: An alternative to a public auction foreclosure is a Deed in Lieu of Foreclosure. The debtor just transfers the residential or commercial property back to the lender and the lender cancels the debt. This is often referred to as a "friendly foreclosure" or a "voluntary foreclosure." It can avoid suits and personal bankruptcy.

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

Note: Bear in mind, that many mortgage companies will decline a Deed in Lieu of Foreclosure. If you owe cash to a mortgage company, a Deed in Lieu is seldom a choice. Regulations might require a mortgage company to foreclosure despite the fact that the Borrower no longer wants the residential or commercial property and does not live in the residential or commercial property anymore.

On the other hand, if you owe cash to a buddy, member of the family, or a personal lending institution, you might be able to transfer the residential or commercial property back to the lending institution and cancel the debt using a Deed in Lieu of Foreclosure.
hgtv.com
But all celebrations, Lender and Borrower need to agree. The lending institution should accept accept the residential or commercial property AND the borrower must concur to move the residential or commercial property, return the secrets, and leave the residential or commercial property.

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

A Customer may buy a Deed in Lieu of Foreclosure, sign it and mail it, but the mortgage company can refuse to accept the deed and continue with the foreclosure and eviction procedure. It is a waste of cash for a Borrower to pay for a Deed in Lieu of Foreclosure without first getting the Lender's written consent.

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

Borrowers usually choose to utilize 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 simply settle on an orderly move out of the residential or commercial property.

Good to understand: Sometimes the celebrations might accept convert the loan to a rental contract. 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 much shorter way of stating Deed in Lieu of Foreclosure. Homeowners consent to sign a deed in lieu to avoid foreclosure. When a seller accepts this deed, the homeowner is no longer obliged to repay the mortgage.

What is Deed in Lieu of Foreclosure

A Deed in Lieu of Foreclosure is a complex file and should be prepared by a lawyer. This is a formal legal file 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 need to be described in the Deed in Lieu of Foreclosure.

By signing the Deed in Lieu of Foreclosure, the Borrower is lawfully transferring title to the residential or commercial property back to the Lender in exchange for the cancelation of the overdue 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 in full of the overdue 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 perform 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 second liens, home improvement liens, judgment liens, child support 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 should "eliminate" or get rid of any liens filed after the Lender's lien

Other liens may consist of the following:

Liens Judgment Liens Mechanic's Lien Home Equity Liens

Even if a foreclosure is required after the Lender accepts a Deed in Lieu to eliminate liens or clear title, the fees for the foreclosure should be significantly less since the Borrower has actually agreed not to contest or otherwise challenge the foreclosure. Also, the Borrower needs to not have the ability to file for Federal Bankruptcy Protection to stop the sale of the residential or commercial property.

A contested foreclosure on a loan not owned by a mortgage company might cost as much as $1500 or more. If the Borrower submits a lawsuit to stop the foreclosure, or declare Federal Bankruptcy Protection, the legal costs along might 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 fees are usually about $38.

Deed in lieu of foreclosure prepared for $350

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

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

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

The Steinbach Law Firm is a Texas Real Estate Law Office. We prepare all files for any realty deal in Texas.