What is a deed-for-lease in a foreclosure?

A deed-for-lease in a foreclosure is a process that a homeowner can use to avoid foreclosure in Washington. In this process, the homeowner can transfer title of their home to the lender, while still being able to stay in the home and pay rent. The lender then assumes responsibility for the home’s upkeep and taxes. This option is only available to certain homeowners who meet certain criteria. They must be in default of the mortgage, but their mortgage payments must be current. Additionally, the homeowner must be able to make the payments for a negotiated lease. The lease payments are often lower than the mortgage payments and can be used to reduce the balance due on the loan. It is important to note that this process does not eliminate the debt and does not stop the foreclosure process. The lender may still initiate foreclosure proceedings, if the homeowner fails to make the lease payments on time. It is important to speak with a bankruptcy attorney to understand the full implications of a deed-for-lease in a foreclosure in Washington. This process can be beneficial for some, but can have long-term consequences if the lease payments are not made on time.

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What is a deed-for-lease in a foreclosure?

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