Title Deeding – An Option for Texas Homeowners with Foreclosure Threats

Mortgage lenders and providers encourage many Texas home owners who are threatened by foreclosure to negotiate with them voluntarily and go for a certain process called deeds in lieu. As reported by www.ibtimes.com, a considerable number of mortgage lenders offered monetary incentives to borrowers in order to persuade them in voluntarily deeding their titles to them and give up the long, complex and tedious process of bank foreclosure and short sales.

As much as possible, lenders make an effort to elude the foreclosure process by pleading the home owners to deed the title of their homes.  In turn the lenders provide the home owners with the assurance that they will not anymore be liable for the difference in the amount the lender gets from selling the house and the amount owed by the home owner. Mortgage lenders are leaning more towards this process since it is easy to sell the house at the shortest time possible.  Some houses that are in very good condition may even be sold in just 30 days.  This lets the lenders get their cash back right away rather than spending additional resources to go through the foreclosure process and then later on still look for buyers.  The price then will be higher as the foreclosure expenses will have to be added on.  There is the probability that the house will not be sold right away and waiting for it to be sold will be added cost to the mortgage lender.  Deeds in lieu make it possible to sell the house right away at a lower price and without additional cash out from them.

A number of homeowners threatened by foreclosure homes in Texas conform to this proposal based on reports from mortgage companies. To encourage clients to take advantage of this offer, the Bank of America had contacted clients through mail and sent out over one hundred thousand solicitations in a span of sixty days requesting the home owners who are in the foreclosure list to opt for the deed in lieu option.

According to mortgage lenders opting to settle for deed of lieu, a sizable number of bank owned homes are sold quickly and the number of transactions under the process have made a milestone in the company’s record.

With the high rise of foreclosure homes through out the United States, mortgagors and mortgagees find the deed in lieu process a refuge. Homeowners, voluntarily transfer the ownership of the home to prospect creditors which will then bypass the need for court foreclosure. Both homeowners and mortgage lenders and providers will be spared the added expense and stress of going to the foreclosure procedures that will be costly for both parties in the long run.

Real Estate experts say that the process already existed before and it was likewise a successful program.  However, it only became popular again when it was brought up by the Home Affordable Foreclosure Alternatives program of the U.S. federal government to assist homeowners affected by Texas foreclosures.

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