Under certain conditions, lenders will accept the property back from the borrower as full payment of their debt to save the time and expense of the foreclosure process.

In these cases, our job is to convince the lender it’s in their best interest to accept the property as payment in full for their debt. This requires skillful research as to current and prospective property values; establishing the fact the borrower cannot afford to make any acceptable level of payments, and that there is no current or near-term market for the property. We use this data as the basis to present the financial alternatives to the lender, of a factual nature, in a manner that allows them to determine for themselves, that a deed in lieu is the best choice in the matter.

Note: a deed in lieu may also prevent the lender from filing an IRS form 1099 on their loss which may otherwise subject the homeowner to adverse income tax consequences.

As with all tax matters, all homeowners are urged to seek advice from qualified tax counsel prior to consenting to a deed in lieu of foreclosure arrangement.

Note: Home Retention And Financial Programs, Inc. is not licensed to give tax or legal advice. None of the statements made herein or elsewhere in this website are to be construed as the giving of tax or legal advice .