What is the difference between a foreclosure and a deed in lieu of foreclosure?

A foreclosure and a deed in lieu of foreclosure are two very different processes when it comes to homeowners who are unable to pay their mortgage. In Wisconsin, a foreclosure is a lengthy legal process by which a lender is able to repossess and sell a home if the homeowner has failed to make their mortgage payments or they are behind on their mortgage payments. The process involves multiple steps and begins with the lender sending out a Notice of Foreclosure to the homeowner. This Notice gives the homeowner a certain amount of time to catch up on their payments before the lender moves ahead with foreclosure proceedings. A deed in lieu of foreclosure is an agreement made between the lender and the homeowner in which the homeowner agrees to voluntarily give the deed of the home to the lender in exchange for the lender releasing the homeowner from their debt and obligation to the home. This is a less aggressive foreclosure process but still results in the homeowner losing their home and the lender taking possession of it. The main difference between the two is that one involves a lengthy legal process while the other is a voluntary agreement between the homeowner and the lender.

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What is the difference between a foreclosure and a deed in lieu of foreclosure?

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