Hard times come and go, however, sometimes experiencing hard times can have a lasting effect on your life as well as your finances. When hard times begin to affect your finances, everything you have worked hard for becomes in jeopardy, including your home in some cases, which may lead to your mortgage company wanting to foreclose on your home.
If a foreclosure action occurs this could not only harm your credit but also put you in risk of not receiving future loans. But, is there an option besides foreclosing. If you or a loved one’s home is about to be foreclosed on, it is in your best interest to contact an experienced Birmingham foreclosure defense attorney so that we can strategize about the best possible outcomes for your situation.
Deed in Lieu of Foreclosure
If you are in Alabama and you are facing foreclosure, you may be able to exercise an option other than foreclosure called a deed in lieu of foreclosure. A deed in lieu of foreclosure is an instrument in which you convey all of your interest in your home to the lender in order to satisfy a loan that is in default and avoid foreclosure proceedings. Essentially, this means that you are giving the deed to your house to your mortgage company in lieu of actually being foreclosed on.
Though it may not seem like a good option because you are not going to keep your home, it is advantageous to you because your home is not being foreclosed on and from a credit reporting standpoint, the foreclosure will not be on your credit and you have the potential to apply for a future loan, whereas you may not have the option if your home is foreclosed on. In most circumstances, to be able to receive a deed in lieu of foreclosure, you may have to show the mortgage company that you tried to sale your home and was unable to. However, there may be more requirements to receive a deed in lieu of foreclosure and therefore, it is in your best interest to seek legal advice if you are considering this option.
Contact a Foreclosure Defense Attorney
A deed in lieu of foreclosure is not always a perfect solution, however, sometimes it brings about the best possible outcomes. Because of the complexity with these matters, and everyone’s situation being different it is best to seek legal advice and representation if you find yourself in this situation. If you or a loved one’s home is about to be foreclosed on, it is in your best interest to contact an experienced Birmingham family law attorney at Massey, Stotser, & Nichols, PC to help you with your case. Contact our office today!