Sample Deed in Lieu of Foreclosure Letter

By
Real Estate Services with Law Offices of Ralph O. Thompson
http://actvra.in/6sM

A law client recently asked me to prepare a "short sale" letter for him. Unfortunately, he didn't have a buyer for his home, so the short sale letter would have been of little use.   There does seems to be a widespread mis-understanding regarding the difference between a short sale and a deed in lieu of foreclosure.

A short sale can be requested from a lender when the homeowner receives an offer for their house and the amount offered is less than the amount owed on the house.  The sale comes up short and the homeowner asks the lender to accept the offered amount as payment in full for the mortgage loan.  To request a short sale you can use this letter as an example.

A deed in lieu is actually more common in today's market.  The homeowner has had their house on the market for a long time and there has been few, if any, offers.  Rather than continue to make payments on the house, the homeowner asks the bank to take the deed to the house instead of (in lieu) of foreclosure.  The bank may consider this if there aren't any significant liens on the property, such as a 2nd mortgage or large IRS liens.  Here is an example of a request for a deed in lieu.

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Groups:
Foreclosures & Short Sales
Tags:
foreclosure
short sale
deed in lieu
short sale letter
deed in lieu letter

Comments 21 New Comment

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Rainmaker
529,628
Ginger Harper
Your Southport~Oak Island Agent!
Coldwell Banker Sea Coast Advantage

Thanks for sharing this with us.

Good information to have.

Ginger

December 16, 2009 09:30 AM
Anonymous #19
Anonymous
sampleletters

Respected sir,i have problem regarding my house i can't explain but i faced this one similar like this post.Thanks for sharing this post.

January 28, 2010 01:11 AM
Rainer
34,550
Kenneth Young
Uni International LLC

Thanks Ralph, good info. and welcome to Rain.....

 

Kenneth

April 05, 2010 02:29 PM
Rainer
5,739
Jake Burton
DoHardMoney.Com

This is just a superb information and thank you so much Ralph for the sample letters. They are great and easy to follow. I must admit this is such a great qulaity work you have done for hundreds here.

December 07, 2010 09:10 AM
Rainer
105,006
Mike Norvell Sr
Norvell Consulting Group
Morris Williams Realty

Yes, nice post and letters...but are these updated to any changes that might need to be addressed now in 2011??

 

August 18, 2011 03:21 PM
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Rainer
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Ralph Thompson

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