Deed-in-lieu of Foreclosure

This is when a homeowner signs their property over to the lender to avoid the foreclosure process.

The Pros: It saves the homeowner from having to go through the foreclosure process

It will take you off the foreclosure lists to make the phone calls stop

It’s free. If you are thinking of doing a Chapter 7 bankruptcy, this may be a better option if the property is your only debt.

Most lenders offer a Cash-For-Keys option.

The Cons: To homeowner has to vacate the property prior to receiving Cash-For-Keys funds

The homeowner doesn’t have any control over the reconveyance date.

The lender may not resale the property right away, so your ‘sit out’ period may not start for a few years depending on the lender

The homeowner will still have a foreclosure on their record.