Using a "Deed in Lieu Of" to Stop a Foreclosure Proceeding

April 14, 2010 - PRLog -- The long term negative impact to a credit score can be seriously detrimental and most likely will make it difficult to obtain new loans anytime in the near future. The good news is that there are ways to stop a foreclosure proceeding and there are many alternatives that consumers may not be aware of. One such method of preventing such an adverse event is using a "deed in lieu of."

Aurora Lillo Editor of the "Best Loan Modification Companies" website -- http://www.BestLoanModificationCompanies.com -- pointed out;


“…If a person's housing situation has become drastic and requires some immediate intervention, it may actually be possible to voluntarily surrender the ownership of a home to the lender. Instead of dealing with all of the legal consequences and stress of court proceedings, it is often possible to use a "deed in lieu of" and opt to sign the deed over to the mortgage company. The lender in return agrees to stop all foreclosure proceedings…”

Few consumers understand why a lender would be willing to entertain such a concept, but the simple fact of the matter is that court filings take an incredible amount of time and can be very costly. It is often much cheaper to allow homeowners to voluntarily surrender their property. In addition, many residents are more likely to leave the home in good condition if they feel that their mortgagor is helping them get back on the right track with minimum lasting issues.

Contrary to popular belief, a mortgage company does not desire the opportunity to permanently damage a consumer's credit rating. As is similar in automobile loans and collateral, a voluntary surrender is often seen as preferred and may provide an important indicator to future lenders. Most individuals are ready to move on and pursue other options later down the road, and a deed in lieu of can be an excellent way to do this.

“…Losing a home can be very disappointing and the struggles are already frustrating enough. Consumers need to realize that there are alternatives and ways to cease legal filings and battles. A qualified professional can help provide advice in a variety of different situations no matter how simple or complex they may seem to individuals. Before simply giving up, a person truly needs to understand their options…” added A. Lillo.

Further information about how to get professional assistance with a mortgage loan modification by http://www.BestLoanModificationCompanies.com