Full question:
In August 2008 I had to move from my house. I had not made payments since Dec 2007 and my wife had just died a year prior with a 60% loss of income, I could not keep up with escalating mortgage payments. The house was supposed to be sold by courts the last week of August 2008. That sale has still not taken place and I am still on the hook for the home owners dues, taxes, and assessments. Can I offer up a 'deed on lieu' get it registered at the court house, and thereby pass title to the mortgage co? I am 67 yrs old and raising a 13 year old granddaughter and feel the need to move on with my life. Right now the house is in limbo, they took it off the sale block and it is just sitting empty. I had it up for sale for 18 months and within a week after I moved out, they kicked my realtor out and changed the locks. They offered it back to me under this new program about a year ago, but I do not want it back, just want it out of my life. Are they in any way obligated to accept a deed in lieu?
- Category: Real Property
- Subcategory: Foreclosure
- Date:
- State: Colorado
Answer:
A "Deed in Lieu of Foreclosure" is a process where a lender accepts a homeowner's deed instead of continuing with foreclosure. This can happen even if foreclosure hasn't started yet. You can ask your lender if they will accept a deed in lieu, but they may require you to be behind on payments, typically 90 days in judicial foreclosure states and 30 days in non-judicial states.
In Colorado, a deed in lieu can be completed faster than foreclosure, as both parties agree on the timing. It also keeps the process private, avoiding public notices. However, if the lender sells the home for less than what you owe, you might still be responsible for the remaining balance.
It's crucial to check the details of any court proceedings to see if the lender has already foreclosed on the property. You should also consult a local real estate attorney to clarify ownership and authority regarding the property. Additionally, be aware that a deed in lieu may have tax implications, so consulting a tax professional is advisable.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.