What is a deed in lieu of foreclosure?

A Deed in Lieu of Foreclosure (DIL) is a legal document that allows a homeowner to transfer ownership of a property to their lender in return for the forgiveness of outstanding debt. This is offered as an alternative to foreclosure and is sometimes seen as a more attractive option for both the homeowner and the lender. When a homeowner is unable to make mortgage payments, the lender usually begins the foreclosure process to receive compensation for the loan amount. With a DIL, the homeowner agrees to voluntarily give up ownership of the property in order to avoid the lengthy and costly foreclosure process. The lender then becomes owner of the property and can resell it to recoup the loan amount. In New Hampshire, a DIL might be a good option to consider if foreclosure is imminent and the homeowner can provide proof that they are unable to make payments. The homeowner can negotiate with the lender to try and avoid foreclosure or come to a settlement regarding the outstanding debt. In addition, the borrower will not be held liable for any remaining balance after the DIL is completed. In summary, a deed in lieu of foreclosure is a legal document used when a homeowner is unable to make their mortgage payments and wishes to avoid foreclosure. The document allows the homeowner to transfer ownership of their property to the lender in exchange for forgiveness of the debt. In New Hampshire, this can be a viable option if the homeowner is able to prove an inability to pay and agrees to the terms set by the lender.

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What is a deed in lieu of foreclosure?

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