How do I know if I am eligible for a deed in lieu of foreclosure deal in the state of Florida?

Whether or not you are eligible for a FL deed in lieu of foreclosure depends on your lender. The decision to accept a deed in lieu of foreclosure belongs to your mortgage lender. Deed in lieu of foreclosure is a legal transaction that is similar to a voluntary repossession, because you are voluntarily signing the deed to your house over to your lender instead of the lender foreclosing on your home.

If you are unable to afford your mortgage payments any longer and have exhausted all your options, you should discuss a deed in lieu of foreclosure with your lender. Or, even better would be to hire an attorney who specializes in helping homeowners who wish to avoid foreclosure to negotiate a deed in lieu with your lender. Losing your home, is never easy and is often traumatic and emotional. An attorney will be able to negotiate calmly and rationally on your behalf, and attorneys are trained negotiators.

Most lenders want to see certain prerequisites before they will agree to a deed in lieu of foreclosure. These include:

• The existence of an actual hardship that has adversely affected your financial circumstances. This could be a prolonged illness, the onset of a disabling condition, job loss, long term unemployment, death of a family wage earner, or divorce.
• You have tried to sell your home for at least several months. Some lenders may require you to try for three months or six months. Usually if they have this requirement they want to see that it was listed for sale with a real estate agent so that it could be marketed and not just handled as a "for sale by owner" with a sign in the yard.
• Some lenders may want to you to try to market the house at a short sale price for a certain period of time. A short sale is when the lender agrees to allow you to sell the house for less than is owed.

If you work with an attorney to negotiate a deed in lieu of foreclosure, your attorney can also make sure you will not be held liable for any deficiency when the house is sold. Any transaction that impacts your financial future should be completed only after receiving sound legal advice.