Deed In Lieu

This page will provide general legal information about the topic of Deed in Lieu of Foreclosure and how it may help California and Arizona homeowners. All information contained on this website is general in nature, and should not be construed as legal advice or a substitute for legal advice. Although we have tried to be as accurate as possible, the following information may be inaccurate, missing some information, or outdated – as law can frequently change or become modified. If you have questions about your case, please contact a foreclosure defense or bankruptcy lawyer in your area. Please note, comments posted to this blog and emails sent to us are NOT confidential and do not create an attorney-client relationship.

General Information: In some cases, where a loan modification cannot be obtained (usually where the borrower is deemed to make too much money or not make enough money) there may be options available to turn the deed over to the lender thereby allowing the borrower to walk away from the property.  Normally whether or not the deed is accepted is up to the lender.  The lender may may require the homeowner to list the property for 60-90 days (via a short sale) before they consider accepting the deed in lieu of pursuing foreclosure.  Other lender-specific conditions may apply and tax consequences may need to be investigated with a CPA or tax attorney.