The first reaction of most people facing house foreclosure is to try avoiding it. If you are in this situation, you actually may have several options. One option is giving your house to your mortgage lender. This is commonly referred to as a "deed in lieu of foreclosure".

Instead of you and your mortgage lender going through the entire foreclosure process, you simply
deed your house to your mortgage lender. Sounds simple. But, as with just about everything else,
the devil is in the details.

First, your mortgage lender may not be willing to accept a deed from you instead of going through the foreclosure process. Your lender may want more than your house if you owe your lender more than your house is worth. For instance, if you owe your lender $125,000 and your house is worth $100,000, your lender really wants the $125,000. Not your house worth $100,000.

Your lender may have some other reason not to accept a deed from you. The reason may be valid (such as affecting your lender's financials) or your mortgage lender might simply be "hard nosed". Either way, your lender may not be willing to work with you and you cannot make your lender accept a deed in lieu of foreclosure.

Second, even if your mortgage lender will accept a deed from you, you may not qualify. If you have any judgments or tax liens against you, your lender has to go through with foreclosure. The legal foreclosure process will remove judgments and tax liens as encumbrances on your house so that the buyer at the foreclosure sale will buy your house free of the judgments and tax liens. Without going through the legal foreclosure process, your mortgage lender would probably have to pay the judgments and tax liens, and your lender will not do that.

Third, if your mortgage lender is willing to accept a deed in lieu of foreclosure and you qualify,
be careful of what documents you sign. Sometimes, when you ask a mortgage lender about
giving a house back to avoid foreclosure, the lender will agree only if you sign a Promissory Note
promising to pay the lender more money. If you are willing to pay your lender more money, so be
it. But, be sure that you understand what you are agreeing to.

When giving a house back to avoid foreclosure, it is wise for you to have a lawyer review all of
the paperwork and make sure that it is what you agreed to and that it is in your best interest. In
fact, if you have any questions of any nature about avoiding foreclosure, talk with a lawyer
licensed in your state.

Beware (this is vitally important), if you are facing house foreclosure, you may have several options. Consider all of the options because some options will work only in certain situations and because you want to use the best option for you.

This article is general information. If you have any questions of any nature concerning stopping
foreclosure, talk with a lawyer licensed in your state.

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