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Resources to Avoid Foreclosure

The U.S. Department of Urban Development has a number of programs to assist homeowners who are at risk of foreclosure and struggling with their monthly mortgage payments.  To get more information regarding the HUD programs please go to their website https://www.hud.gov/  or click here: U.S. Department of Urban Development.

On July 8, 2008, bill 1137 was signed in California to assist homeowners in foreclosure and tenants in foreclosed property.  To get the full text regarding this bill click here.

- Call the U.S. Department of Housing & Urban Development (HUD) at (800) 569-4287 or visit the website at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm

- Housing counselors can help you contact and work with your lender to get help with your mortgage - free of charge.  Call the Homeowners HOPE™ hotline at (888) 995-HOPE to reach trained housing counselors go to:  http://harpguide.org/?utm_source=bing&utm_medium=cpc&utm_campaign=Geo1_bing&utm_term=harp%20program%20refinance%20loan&utm_target={target}&device=c&devicemodel={devicemodel}&utm_group=1167681446557180&utm_content={creative}&placement={placement}&msclkid=07ef74bd9a801aeb8d422e78b3593621  or for a list of approved housing counselors sent us an email to: info@maliburecon.com

What is a Deed in Lieu?

A deed in lieu of foreclosure is where you deed your property to the lender in exchange for being forgiven the entire amount of the mortgage. The lender then sells off the property in order to retrieve as much of the unpaid mortgage amount as they can.

How does a deed in lieu work?

If you choose to try for a deed in lieu in order to avoid foreclosure, you need to sign several legal documents such as the Agreement in Lieu of Foreclosure and a deed. The first document sets out the terms and conditions of the deed-in-lieu, and is signed by both the lender and borrower. The second document, which is the deed, conveys legal ownership of the property to the lender.

The lender marks the borrower's note as "paid" and provides the borrower with two documents - one which states that the debt is canceled and the other waives the lender's right to a deficiency judgment (the lender's right to ask for the amount of the debt they are unable to recover from the sale of the home).

The agreement for deed in lieu of foreclosure is executed through an escrow company which receives the borrower's note (marked as "paid") from the lender. The escrow then records the deed in the property's file at the county recorder's office and sends the note to the borrower, releasing the borrower from all obligations under the mortgage.
To get more information on a deed in lieu, please contact us (888) 531-6605 or email us at info@maliburecon.com