Quick explanation on grant deed in lieu of foreclosure.

In a deed in lieu, you sign a deed transferring your house to your mortgage company.

A grant deed is typically the type of deed you sign. Although it may be a warranty deed. These deeds are used when you know you are the owner of a house and you are transferring title you know you have.

The lender will accept the property and then either go after you for their financial losses, or call it a day and move on. You should always negotiate two things in doing a grant deed in lieu:

1. How will the lender report you to the credit bureaus?

2. How will the lender handle their financial losses?

For information on how the lender reports you to the credit bureaus see my post on how much does your credit drop in deed in lieu of foreclosure.

I also soon have a post on how to negotiate with your lender regarding financial losses so they don't come after you. Meanwhile, if you are thinking you may want to buy another house after a deed in lieu, see my post on buying a house after deed in lieu of foreclosure.

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