Already in Foreclosure?
If your home is in foreclosure, this can be an extremely difficult time and it may appear that you have few or no available options. You may also feel like you've lost control and can't determine if or when you can vacate.
Don't Give Up
Depending on your specific situation, you may have options. For instance, you may be able to voluntarily transfer your mortgage to the owner with a Mortgage Release™ (Deed-in-Lieu). A Mortgage Release is where you, the homeowner, voluntarily transfer the ownership of your property to the owner of your mortgage in exchange for a release from your mortgage loan and payments.
Options are available (sometimes with a relocation incentive) to help you leave the home immediately; stay in the home for up to three months without paying rent; or lease the home (at market rates) for up to one year. Depending on your situation, you may be required to make a financial contribution to receive a Mortgage Release.
Can I Quality?
To qualify for Mortgage Release, you'll work with your mortgage company to:
- complete the eligibility process, such as determining the value of the property and how much you still owe as well as reviewing your current hardship
- review the options available under Mortgage Release (your mortgage company will help you choose the best option for your situation)
If approved, you will be required to sign standard pre-closing documents as well as attend the closing. A Mortgage Release usually takes around 90 days to complete, but this could be shorter or longer depending upon your specific situation.
The Right Move
Your next steps depend on which option you've qualified for. These include immediately vacating the home, staying in the home for up to three months (no rent), or leasing the home (paying market-based rent monthly) for up to one year.
Additionally, when you vacate the home at the agreed-upon date, you are required to leave the home—inside and outside—in good condition, free of interior and exterior trash, debris or damage, and all personal belongings must be removed. In some cases, you may be eligible to receive up to $3,000 relocation assistance to use toward your moving expenses and to make the transition to new housing easier.