Legal Question in Real Estate Law in Georgia

The deed-in-lieu agreement and documentation can have whatever terms the lender wants. If the lender wants to keep you on the hook until they flip the property, they can certainly write that into the terms of the deed-in-lieu docs. The terms are sometimes negotiable, but you are obviously in the weaker bargaining position. I don't hear about many lenders willing to give a deed-in-lieu of foreclosure in Georgia, so it doesn't surprise me that they are trying to keep you on the hook for as long as possible. In most situations, when you first approach the lender, the lender will require that you apply for a loan modification. If you don't qualify for a modification, they will then typically require you to try and short sell the property. If that fails, most lenders simply foreclose on the property as opposed to offering you a deed-in-lieu of foreclosure option. There are ways to stop the foreclosure if you want to stay in the house, such as declaring bankruptcy.

Regardless of what you decide to do, I STRONGLY recommend that you don't sign any documents with the lender until they are reviewed by a Georgia real estate attorney, who can explain your options/rights/consequences. Once you sign those documents, you are on the hook. It is no secret that employees of lenders often don't know what they are talking about when you speak with them on the phone -- one employee might tell you something completely different from the other. What's important is what the documents say, because that is what a court will look at if you end up there. Please feel free to contact me at [email protected] if you would like assistance.

Best of luck.*****The above is for informational purposes only and does not create an attorney-client privilege.******

One of the dumbest moves you can make is a deed in lieu of foreclosure on those terms. STOP. See a lawyer. You are about to create a ticking time bomb that could ruin you financially. Rarely is a deed in lieu good for you.

I'd want to see what they are proposing but oftimes many other options are far preferable, and if they are not even willing to release you now, you are being offered a worse than normal deal.

Again, STOP talking to the bank and see a lawyer about your real options. I'd be glad to discuss them.

Why would you think that releases you? Read your loan documents. Do they say that? To repeat the bottom line, you borrowed a certain amount of money and agreed to pay it back with interest. Giving then back property worth less than that does not pay them back what is owed. This basic should be understood before ever signing any loan documents.