What is a deed in lieu? Hey, guys. This is Brad with Arbor View Properties. Thanks for checking out this video. I really appreciate it. If you have a house that you need to sell and you don’t want to watch the rest of the video, click on the link below in the description. It’ll take you to our site. You can fill out the form and someone from our team will call you right away, or you can call us right away at 770-810-5715.
Okay. What is a deed in lieu? A deed in lieu is a provision in your mortgage note, your promissory note. I’m speaking in the case of Georgia here. There’s typically a promissory note and a security deed when you buy a house and you get a mortgage on it. In that promissory note, there’s a provision in there that basically says that you as the borrower have the ability to give a deed in lieu of foreclosure in the event that you’re behind on your payments. Basically, what that means is you get to deed the property back to the bank or to the lender in exchange for not going through the foreclosure process. All you’re doing is literally signing a quick claim deed and you’re giving the house back to the bank and then they take the house and then they go sell it or do whatever they want with it and you’re out of it.
Now, there could be a chance where maybe if you give the house back and they can’t sell the house for enough money and there’s a deficiency, they might come after you for a deficiency judgment. It really depends on the lender. Depends on a lot of things, so that’s a maybe answer there. I know that’s not a very clear answer, but that’s a maybe, but basically there’s a provision in your note, in your promissory note, that says that you can deed the house back to them in the event of foreclosure, and that just saves you and saves the bank and saves everybody through the whole process of having to go through the foreclosure process to dispose of the house.
That’s essentially what a deed in lieu is. Thanks again for checking out this video. I hope it helped answer your question. Again, I’m Brad with Arbor view Properties. We’re a house buying company in Metro Atlanta. We’ve been buying houses in Metro Atlanta for a number of years, and if you’d like to speak to us about selling your house, please either call us at 770- 810-5715 or click on the link below in the description, fill out the web form on our website and a member of our team will contact you as soon as possible. Thanks again, guys. I hope you have a great day.