A lot of homeowners facing Texas foreclosures have been receiving advice from mortgage service providers and lenders to opt for the process called deeds in lieu. A big number of lenders are also reportedly targeting certain borrowers by offering them cash incentives to convince them to forego the long and complicated process of foreclosures or short sales by deeding titles.
Lenders try to avoid the troublesome process of foreclosure short sales by asking homeowners to deed the title of their homes with the promise of not bothering the homeowner in the future for any difference between the amount that the lender will get from selling the house and the amount owed to them by the homeowner. Mortgage lenders are said to be favoring this process because the whole procedure can be completed and the house can be sold off for as short a time as 30 days.
Mortgage firms reported that a lot of troubled homeowners or those facing Texas foreclosures are agreeing to this suggestion. As evidence of the growing popularity of the process, Bank of America has reportedly mailed around 100,000 solicitations to clients within a period of 60 days asking them to choose the deed in lieu option.
Lenders who prefer to negotiate for a deed in lieu procedure with borrowers have revealed that a huge number of bank owned homes under their books are quickly sold off and the volume of transactions completed under this process is breaking past company records.
With the listings of foreclosure homes continuing to expand in all areas of the country, both lenders and borrowers are finding solace in the title deeding procedure. It entails the voluntary transfer of home ownership to creditors which effectively eliminates the need for any court-supervised foreclosure.
According to real estate experts, the process is an old one and has only regained its popularity when it was included in the Home Affordable Foreclosure Alternatives program of the U.S. federal government which was designed to help troubled homeowners, including those who are facing Texas foreclosures.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.