Can I Give My Lender A Deed-In-Lieu Of Foreclosure?
Lenders are not required to accept a deed-in-lieu of foreclosure — they want their money, not the house. That said, some lenders — but not all — would be willing to accept a deed in lieu of foreclosure.
Alternatively, you may be able to get a loan modification such as a longer loan term, a lower rate, perhaps interest-only payments for a few months, etc. In cases where a borrower simply mails in the keys, this is not a deed-in-lieu of foreclosure, instead this is simply “jingle mail.”
Perhaps you could also offer to sign a personal note to make up the lender’s loss. Given the circumstances of a possible foreclosure, many lenders would be elated with such an offer.
To get the best arrangement it’s best to have an attorney negotiate with lenders.
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