Deed in Lieu of Foreclosure is foreclosure, period. There’s some technical differences worth covering but it’s basically a foreclosure. At least in the state of Georgia.
Essentially, a Deed in Lieu of Foreclosure is where the bank allows you to “choose” foreclosure voluntarily foregoing the legal process entirely. In essence, you save the bank the $1,100 that it cost for them to foreclose on your home in the state of Georgia.
So what’s the benefit to the home owner?
There is a brief opportunity to negotiate the terms of the foreclosure, most importantly, how the debt gets handled. However, over 90% of most home owners will never even consider doing this, so it’s a moot point.
The other benefit?
As a short sale seller you reduce your overall balance owed to the bank by the amount of savings you save the bank… so in this case, $1,100.