Deed In Lieu Hardship Letter
Step 2 - Create your hardship letter
Step 3 - Apply for loan modification
A deed in lieu hardship letter is submitted to your lender, with various other attachments, to explain various reasons for your current financial trouble. As stated earlier, these reasons need to be true, severe, and documented, as the lender will be checking the facts of your case very closely. This specific letter requests that your lender accept the deed on your home or property, instead of foreclosing on it. As you know, foreclosure leaves a very serious dent in your credit score, and will make it challenging in the future to apply for further loans. This request often allows your credit score to remain more stable, as the lender who accepts these terms will take your property’s deed, and forgive you the debt you accrued over the life of the loan. The benefit of this option for you is that your credit score won’t be hit as hard, and the lender will relieve the debt on the property. You will also not have to worry about finding a buyer for the home in a challenging real-estate market. The lender hopes that they will be able to sell it later, and for not, they can avoid the bureaucratic process of foreclosing on your property.
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