Legal Question in Real Estate Law in Florida

I need to know what a deed in lieu is, verses letting the bank just foreclose on our home. My husband and I have seperated and we no longer can afford , nor want the house. We are behind in 2 pmts and are putting it for sale in two days. The bank says we can do a deed in lieu thing but cant tell us if we would still owe them money.. We have other equity and own a busines..


Asked on 10/02/09, 4:55 pm

2 Answers from Attorneys
Jean Winters Winters & Winters, PA

A deed in lieu of foreclosure is marginally better for your credit than foreclosure. However, the bank can (and probably will) reserve its rights to foreclose and to a deficiency judgment. If you have PMI, it is possible the lender could make a claim and then assign its rights to a deficiency judgment. Either way, you need to verify whether the bank will waive its rights to a deficiency judgment. The bank can most surely tell you that. If it doesn't, then find someone in the bank who can.

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Answered on 10/02/09, 5:05 pm
David Slater David P. Slater, Esq.

It may keep your legal expenses down

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Answered on 10/02/09, 5:52 pm


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