In most situations involving this type of agreement, it is a good idea to contact a legal professional. Even if you do not hire a mortgage lawyer, you should schedule a consultation.
A deed in lieu attorney can help you properly fill out legal documents and application forms. They will also ensure that you submit all the necessary paperwork to qualify for a deed in lieu of foreclosure.
A legal professional can help if the lender will not release its right to pursue a deficiency judgment. The deficiency on a property is the difference between fair market value and the debt that is owed.
For instance, suppose your house is worth $120,000 and you owe your bank $150,000. In this case, the deficiency would be $25,000.
Some banks will attempt to collect deficiency even after a deed in lieu of foreclosure agreement. To avoid this negative consequence, secure trustworthy legal advice.