Deed in Lieu - Lawyers in Los Angeles

If you have a fair to substantial amount of equity in your home, you may not need to go through a short sale in order to avoid foreclosure. With a deed in lieu of foreclosure agreement, you do not have to find a buyer for your home. Instead, the bank who holds your mortgage will accept the deed to your property, and any remaining mortgage balance will be forgiven. By accepting the deed, rather than moving forward with the foreclosure, the bank allows you to be free of the debt without having a foreclosure on your credit report.

However, just as in a short sale, any forgiven balance in a deed in lieu arrangement may be subject to a forgiveness tax and an increase in overall taxes. This can cause additional financial difficulties if you are struggling to pay bills, or if you have lost your primary source of income. Also, there are often other fees involved with regards to transferring property which may apply, depending upon your particular situation. Property laws are often complex, and you may find that the deed in lieu process is confusing at best.

The additional fees of a deed in lieu, when coupled with the potential tax penalties, means that you need to carefully consider your options when choosing such an arrangement. You could be responsible for hundreds, even thousands of dollars in taxes, in addition to fees that are related to property conveyance. If you are already on the brink financially, these additional costs can spell disaster. Your best option is to speak with an attorney who can lay out all of your options, and help you to decide which is best for you.

Our office is dedicated to helping individuals solve their debt problems. Filing for bankruptcy can be one way to get back on your feet and make a fresh start, however, each case is different and should be handled with regards to the unique circumstances that make up the case. Contact us today and arrange for your free initial case evaluation. Our team of expert Los Angeles County Bankruptcy Attorneys is ready to assist you with your mortgage debt concerns. Don't wait - the sooner you contact our office, the more help we may be able to provide.