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Arranging to provide a mortgage holder with a deed in lieu of foreclosure is generally a last resort to avoiding foreclosure. However, banks and other lenders are seldom open to this option for a variety of reasons. At Schwartz Flansburg, in Las Vegas, Nevada, our attorneys counsel homeowners about the pros and cons of this alternative to foreclosure. If a foreclosure action has already begun, our firm will fully assess your options and advise you about a course of action.
This option is appealing to homeowners who are in default on their mortgages for several reasons. First, they can eliminate their mortgage obligations without going through the lengthy foreclosure process. Second, the deed in lieu of foreclosure is probably less damaging to a homeowner’s credit rating. Third, it is more private than a foreclosure, which involves public announcements, legal notices and eviction, however, the homeowner still loses the house.
This option is not especially popular with banks and other lenders. Although it may be faster than foreclosure, there are several negatives that limit the usefulness of this transaction from a lender’s viewpoint. First, the bank will own the house and will have to sell it to recover the losses. If the house is worth less than the amount owed, most banks will not even consider this option. Moreover, they will need to insure the home, pay taxes and keep the utilities on. Nonetheless, under the right circumstances this option can serve both parties’ interests.
At Schwartz Flansburg, our lawyers help homeowners explore other alternatives to foreclosure, including: • Short sale, or pre-foreclosure sale • Loan modification and Nevada Foreclosure Mediation • A negotiated repayment plan • A forbearance agreement • Refinancing • Assumption of the mortgage by another party. Although these options are not available in all circumstances, they are all worth considering. Our attorneys have the knowledge and experience to counsel clients on the best options for their unique situation. We do everything possible to help clients avoid a default on a home loan and subsequent foreclosure.
Contact Our Las Vegas Law Firm
At Schwartz Flansburg, we will assess your unique financial situation, ask the right questions and explain the legal and financial alternatives available in clear and understandable language. Contact us to learn more about our real estate practice in Las Vegas. We have Spanish-speaking staff to assist those who communicate best in Spanish.
For a free consultation, please call 702-385-5544 or complete the form on the left.