My name is Carmen and I am a HUD-approved housing counselor. More lenders are considering the Deed in Lieu because borrowers donít want to have the record of a foreclosure on their credit report. So basically, if you are in default and facing foreclosure and you have made an attempt to sell the house through a short sale but not been successful, your lender should consider giving you an option to exchange the deed of the house in lieu of the foreclosure. Most of the time, the difference of what you owe compared to the value of the home will be forgiven.
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