Behind on your mortgage and the bank is offering a deed in lieu of foreclosure?
Sign the house back, hand over the keys, walk away. But if the lender does not waive the deficiency in writing, it can still come after you for the balance after you've moved out.
This video compares a deed in lieu of foreclosure and a short sale side by side, from the homeowner's side: how each one works, what lenders require, and what each one can cost you later. A short sale takes longer, but you may get to stay in the home while it works, and getting a written deficiency waiver is one of the main goals.
WHAT YOU'LL LEARN
• What a deed in lieu is and what a short sale is
• Why lenders usually want a short sale tried first
• Why liens (second mortgage, HOA, property taxes) can kill a deed in lieu
• What a deficiency is and why the written waiver matters
• The 1099-C and taxes on forgiven debt (IRS Publication 4681)
• What each option does to your credit
• FHA relocation money of up to $3,000
• Your timelines: the 120-day rule and the 37-day application deadline
• Your next steps, including a free HUD-approved housing counselor
- AgentJim Armstrong
This video and its description are the views of the individual agent, not of Momentum Realty. Property and market details are deemed reliable but not guaranteed and should be independently verified.