Alabama Foreclosure — What is a Deed in Lieu of Foreclosure?


Alabama Foreclosure — What is a Deed in Lieu of Foreclosure?

Alabama Foreclosure -- What is a Deed in Lieu of Foreclosure?A deed in lieu of a foreclosure is one technique to avoid a foreclosure (non judicial foreclosure in Alabama.)

It is where you give the deed back to the mortgage company instead of (in “lieu of”) the mortgage company foreclosing on you.

Be careful about what the settlement language really says between the mortgage company and yourself.

Especially if you’re interested in this approach.

For example:

There are other issues to look at but these are some of the more common.

Contact Us.

If you want our help in looking at your particular situation with an Alabama property, please give us a call.

You can reach us at 205-879-2447 and our paralegal Randi will be glad to better understand your situation.

She will be glad to set up a meeting with us.

Or you can fill out this contact form and we will get in touch with you as soon as possible.

Thanks for reading, and have a great day!

-John G. Watts


2 Comments

  1. Andy Lai says:

    How long will it take to do deed in lieu and how much it usually costs? The property is in Alabama. Thanks!

    • John Watts says:

      Andy,

      Not an easy way to give you specifics. Each situation is different especially with different mortgage companies.

      Here’s a typical pattern:

      1. Fall behind
      2. Ask for loss mitigation
      3. Be considered for loan modification
      4. Get turned down
      5. Try and sale the house for at least what it is owed
      6. That fails
      7. Try and do a short sale (selling for less than what is owed)
      8. That fails
      9. Considered for deed in lieu of foreclosure

      As far as price, again it varies. Some companies want you to pay any deficiency after the house is sold — others don’t.

      Give us a call if you want — 205-879-2447 and ask for Randi and we can chat about it.

      Thanks!

      John Watts

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