Deed in Lieu of Foreclosure Attorney in New Jersey
Today's economy has left many families facing large debts that they cannot handle. These debts are affecting their ability to stay current on their mortgage payments, leaving them facing bankruptcy or foreclosure of their homes. At the Law Offices of Darin D. Pinto, P.C., we provide effective and efficient legal representation to clients wishing to explore their options for avoiding foreclosure.
One of your options is a deed in lieu of foreclosure. To learn more, please see contact us by e-mail or by phone at 908-317-9405 to schedule an initial consultation.
Deed in Lieu of Foreclosure
This type of instrument conveys the borrower's interest in their property to the lender to satisfy a loan that is in default, thus avoiding foreclosure. This is advantageous to the borrower, in that the transfer of the deed releases the borrower from all or most of the debt associated with the loan. The terms of the transfer of the deed are often better than would have resulted from the foreclosure.
Tax Consequences
If you choose to pursue a deed in lieu of foreclosure, it is important to consider the tax implications that may apply to your situation. A deed tax may be applied, since there is the transfer of property, and income tax on your canceled debt may also be applied. However, due to some recently passed laws and relief acts that have been passed, your tax obligations may be minimal or non-existent. Our firm can review your situation and advise you if any tax consequences will apply if you take a deed in lieu of foreclosure.
Do I Get to Keep my Home?
Much like with a short sale, a deed in lieu of foreclosure is completed in order to avoid foreclosure and eliminate your mortgage obligation. However, if you choose either of these options, you are unable to retain your property or home. It may be possible to keep your home by attempting a loan modification or by filing a Chapter 13 bankruptcy, if either of those options are unavailable, you may be left with a deed in lieu of foreclosure or a short sale as your only options.
Contact a Lawyer
For experienced advice on matters of bankruptcy, foreclosure or a deed in lieu of foreclosure, call 908-317-9405 to contact a member of our legal team in Westfield, New Jersey, today.
Law Offices of Darin D. Pinto, P.C.
376 South Ave East
Westfield, NJ 07090