Sometimes it just makes financial sense for all parties to move on and limit the damage. These types of solutions are less damaging to a borrower’s credit than a foreclosure and allow consumers to rebuild their credit scores more quickly by reducing their monthly obligations and increasing their ability to pay.
Banks appreciate these types of solutions when they are appropriate, because they can save the bank a great deal in foreclosure costs. A good foreclosure Attorney can often negotiate cash incentives for relocation expenses in these types of solutions.
Deed in lieu of foreclosure: Deed in lieu of foreclosure is a process by which a homeowner conveys all interest in a real property to the lender to satisfy the loan that is in default and avoid foreclosure proceedings.
A foreclosure Attorney that negotiates to have the deed in lieu agreement immediately releases the homeowner from most or all of the personal indebtedness associated with defaulted loan.
Short Sale Relocation Assistance: This solution is simply a variation of the deed in lieu of foreclosure process with one added twist/benefit. The difference is that the lender will actually pay the homeowner to vacate the property in accordance with an agreed upon date.
The conditions are that the homeowner follow the timetable and leave the home undamaged and in good order. This solution is attractive to lenders who wish to avoid incurring additional expenses involved in evictions and repairs.