Deed-in-lieu Of Foreclosure
The best way to avoid foreclosure in Mesquite TX after all else fails is to offer the lender a deed-in-lieu of foreclosure. A deed-in-lieu to avoid foreclosure involves signing your deed over to your lender in exchange for the lender agreeing not to foreclose on the home.
Although this sounds ideal for many distressed homeowners, the truth is that lenders typically will not accept a deed in lieu until after you’ve tried a short sale. They want you to try and solve the problem first because they don’t want the house back and don’t want to have to resale the property themselves because REO’s typically sell for less than what short sales sell for. So basically, it would take as long to do a deed-in-lieu as it would to do a short sale since typically most lenders won’t accept that option until after the short sale has run its course.
In addition, from a credit standpoint most credit bureaus treat a deed-in-lieu the same way as a short sale. So there’s absolutely no difference between a deed-in-lieu and a short sale from both a time needed standpoint and from a credit standpoint. However, if the short sale doesn’t work and foreclosure is the ONLY option, a seller should definitely explore a deed-in-lieu.