Delivery of Deeds to Avoid Foreclosure
By Sandy Flores
Real estate instructor at the College of Santa Ana
One of the first choices when you are having problems making payments on your home is to contact the bank that has your mortgage.
It is important that the bank is aware that you are going through an unfavorable financial situation and needs help, to thereby analyze their personal financial situation, and can present options that allow you to meet your mortgage obligation in a more accessible .
The bank will send a form to request assistance and an explanation of the current financial situation you are experiencing and it takes you to request this kind of help. Each bank is different and vary in relation to the alternatives and possibilities for help that each can offer their customers.
If not possible a type of agreement with the bank that holds your loan, there are other resources to avoid repossession. One of them is called Scripture instead of repossession or Deed in Lieu English Of Foreclosure. It is an instrument in which the mortgagor (borrower) transfers all property interests to the mortgagee (lender) to satisfy a loan that is in default and avoid repossession proceedings. This process offers advantages for the borrower and for the lender.
The main advantage is that it is relieved of the debt associated with the mortgage loan in question. The borrower avoids public record because of this proceeding and may receive more generous terms than if carried out a repossession.
The borrower also avoids the public notoriety of a foreclosure proceeds and may receive more generous than those made in execution of a formal mortgage terms.
Advantages for the lender may include inter alia reducing the time and costs of repossession and may include additional advantages if the borrower requests a bankruptcy.
For this instrument to be effective and considered, the debt must be secured by the property reference being transferred. Both parties enter into such treatment voluntarily, and in good faith. Generally the lender will not proceed with the process of writing rather than repossession if the current value of the property on the market exceeds the debts of the borrower.
Due to the requirement that this legal instrument be voluntary, lenders will often not act upon a method of Scripture rather than repossession unless they receive a written offer of such transfer of the borrower that specifically states the offer to enter into negotiations. This vital promulgate rules and protects the lender from a possible subsequent claim that says the lender acted in bad faith or pressured the borrower to the agreement.
Thereafter, both parties must proceed with the settlement negotiations. Neither the borrower nor the lender is obliged to proceed with the legal instrument Scriptures instead of repossession, but until they have reached a final agreement.
It is very important that you gather as much information as you can, before taking a final decision on which option would be more assertive for you. Get all the necessary information and advice from a qualified professional to know which alternative is best for you and likewise determine the consequences of the Scriptures rather than repossession.
Act immediately if this is happening or is in a similar situation. Time passes very quickly! Not only have less time to act but also fewer alternatives and solutions to work with them and avoid foreclosure.