Are you facing the possibility of losing your home? People in the Royal Oak area can often end up in unexpected financial troubles for a wide variety of reasons. If you have fallen on hard times and are having difficulty meeting your monthly mortgage demands, then you might be wondering what you can do to get out from underneath that debt, including the possibility of foreclosure. While foreclosure is typically not anyone’s first choice, sometimes it is the only method available. However, in many instances, with the help of our experienced Royal Oak law firm, people can avoid foreclosure.
Helping You Avoid Foreclosure in Royal Oak
There are other options available besides foreclosure, including forbearance, loan modification and short sale. Another option that many people are not aware of is a Deed in Lieu of foreclosure. Essentially, this process allows the borrower to voluntarily turn over the title of his or her property to the lender and in return be released from his or her mortgage. When choosing a deed in lieu of foreclosure, the borrower typically has to initiate the process and ask the lender for a loss mitigation package. The borrower will need to include several items in his or her request for this process, including:
- A financial statement that details monthly expenses and income
- Income proof
- Tax returns from recent years
- Bank statements
- A letter of hardship
It is also very common for the lender to request that the homeowner first attempt to sell his or her home before the lender will accept the deed in lieu of foreclosure option.
Understanding the Advantages of Deed in Lieu in Royal Oak
While it is not always the best choice in every situation, there are several advantages of using the deed in lieu of foreclosure option; most notably, avoiding foreclosure. A deed in lieu also allows the borrower to be released from his or her indebtedness from the defaulted loan and it typically does not hurt his or credit as much as foreclosure. The deed in lieu option can also be advantageous to the lender for several reasons, including reducing the cost and the time it takes to go through the foreclosure and repossession process. It can also decrease the risk that the borrower will choose to get revenge against the lender and decide to damage the home before he or she is evicted.
Helping You Decide in Royal Oak
At the Law Office of John Little, PLLC, in Royal Oak, we understand that anyone facing the possibility of losing his or her home is in a difficult situation. We know the different emotions that you could be experiencing and we understand that this can be a trying time. We also know that there is hope. While we cannot guarantee that a deed in lieu of foreclosure will be your best option, it is a possibility. If you are in this kind of circumstance then you should speak with us as soon as you can. We can look at your situation, discuss the possible options available to you and help you make the right choice. If you are facing the possibility of foreclosure, then contact the Law Office of John Little, PLLC at 248-865-3455, or reach out to us online.