Colorado Springs Realty Blog

Some home owners who are in distress may choose the option of a Deed in Lieu instead of a short sale.  The home owner gives the deed for the house back to the bank and can walk away from the house without having to worry about having to do a short sale.  A Deed in Lieu benefits the lender since the lengthy foreclosure process can be avoided. 

The home owner can walk away and the bank may not seek a deficiency judgment (money bank has lost on the mortgage) since the owner gave up the property.  If the distressed home owner has equity in the home, a Deed in Lieu may not be the best option.  The bank has to approve a Deed in Lieu and if the home has more than one lien, it may not be accepted. 

A Deed in Lieu is reported on an individual’s credit report and in some instances can be viewed the same as a foreclosure.  There are alternatives to foreclosure, contact a real estate agent in Colorado Springs who is experienced.

Colorado Springs Real Estate Agent, Patricia Beck, providing real estate services to home buyers and sellers.