Here’s a question we were just asked: “A deed in lieu of foreclosure means what?” It means that “The homeowner agrees to relinquish the property voluntarily to the lender by transferring the deed to the property… and in exchange, the lender agrees to cancel the loan.”
Because the property does not go into foreclosure, the owner can avoid the stigma of bad credit that he/she would have in a foreclosure.
There is one potential catch to be aware of though, and that is: The lender can potentially go after the property owner if there is a deficiency balance upon the sale.
Questions about real estate? Please feel free to ask the Restivo Team.
Anytime you are considering either buying or selling real estate in Miami and would like an experienced local Realtor to assist you, please don’t hesitate to contact Alexandra and Vicki Restivo – 305-793-1365
Restivo’s Blog and Website: MiamiRealEstateCafe.com.