Ann Shack, Keller Williams  

Expert assistance and advice in real estate short sales, lender negotiations and the Home Affordable Foreclosure Alternatives Program

Deed-In-Lieu of Foreclosure

Generally, if the borrower makes a good faith effort to short sell the property and is ultimately not successful, a servicer may consider a deed-in-lieu of foreclosure. With a deed-in-lieu, the borrower voluntarily transfers ownership of the property to the servicer - provided the title is free and clear of mortgages, liens, unpaid HOA fees or other encumbrances.

The HAFA Program streamlines both of these options to make it easier for a homeowner to work with their servicer. Under the program, a homeowner can receive up to $3,000 in assistance to help with relocation costs.

You must be advised however that mortgage servicers and investors write their own guidelines under the Federal requirements to determine how to implement the program. For more information about your options, you should contact your mortgage servicer. If you have questions about the program, or want guidance about how these options may impact your personal situation, you may wish to speak to a HUD-approved housing counselor for free.