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Must A Home Be Auctioned With Deed In Lieu Of Foreclosure?

by Ronald
(Portland, OR)

Hi my question is: Does our home have to be in an auction off first with using the deed in lieu of foreclosure?

Stop Foreclosures Team responds:

Hi Ronald,

Good question. In order for just about any lender to consider approving a request for a deed in lieu of foreclosure, the homeowner must try to sell the home.

This is not done through an auction. The homeowner will list the property with a Realtor and provide verification of this. The home must be on the market, for a reasonable and fair amount for at least 90 days without selling.

This is when a deed in lieu of foreclosure can be an option. Once the lender approves the deed in lieu of foreclosure, they obtain ownership, advise when the residents must vacate and they will then proceed to try to make a profit from the home or at least try to get a good bit of the money that they were owed.

The auctions are generally reserved for the homes that are taken through a sheriff's sale. When the lender has legal ownership of the home through a deed in lieu of foreclosure process, they will generally hire a Realtor and sell the property that way in order to get as much out of it as they can.

Hope that this helps you.


SF Team

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