If you do not qualify for a home modification, you can stop Virginia home foreclosure with a deed in lieu of foreclosure.
You can avoid foreclosure on your home in Virginia through several available options. If you wish to stop Virginia home foreclosure, deed in lieu of foreclosure can allow you to exit your mortgage with less damage to your credit. This option has advantages and disadvantages, so it is important to understand what is involved.
In a Virginia foreclosure deed in lieu, you give your lender the deed to your property. The primary benefit of this option for your lender is that it does not incur the expenses of foreclosure proceedings. Foreclosures begin when you fall behind on your mortgage payments. Deed in lieu of sale requirements vary from one lender to another. Some lenders require that you are in arrears on your mortgage before they will accept a deed in lieu of sale. Your lender may not accept a deed in lieu of foreclosure, if:
- It appears you are able to pay the difference between the mortgage loan and the market value of your property.
- You are unable to demonstrate a financial hardship that prevents you from paying your mortgage.
- If you have another mortgage, lien or home equity loan on your property.
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The main benefit of a deed in lieu for you is that you can exit your mortgage with dignity. It is important to keep in mind this is not a method that will allow you to keep your home. Plus, your credit rating will take a hit with this option, but the negative impact on your credit rating may not be as severe as foreclosure. Additionally, you will receive a 1099 for the amount of money that your lender writes off and you will be taxed on that money.
With a deed in lieu of sale in Virginia, can exit a mortgage that is no longer affordable, but it is important to make sure you understand the risks involved. If you need an effective way to stop Virginia home foreclosure, deed in lieu of sale transactions may be your best solution. Before deciding whether this option is right for you, it is important to understand the requirements for this option and the potential risks involved. If you want to try to sell your home before requesting a deed in lieu, go to Reply! to find a real estate agent who specializes in pre-foreclosure sales.