[docusrex]

Dear All, I got SUPREMELY behind on my mortgage, and I finally got caught up. I'm current on all but the legal fees re: to my pre-foreclosure. I only owe them the legal fees for the "Realty Attorney". They said that they would be sending paperwork out re: to that information and that I would get regular statements again after I solved the issue. Problem is this: 11 days after I send them money, I got a credit alert that stated that I had a "Deed in Lieu of Foreclosure" Placed on my credit report. I have NO Idea what that is, and I didn't agree to anything!!! What's the deal here? Am I screwed royal, and I'm going to loose the house anyways or what? I don't know what I'm lookin' at here, and I just gave them every dime I have to keep the damn house. HELP!!!

[kickinit]

A Deed in lieu of foreclosure is a deed instrument in which a mortgagor (i.e. the borrower) conveys all interest in a real property to the mortgagee (i.e. the lender) to satisfy a loan that is in default and avoid foreclosure proceedings.

The deed in lieu of foreclosure offers several advantages to both the borrower and the lender. The principal advantage to the borrower is that it immediately releases him/her from most or all of the personal indebtedness associated with the defaulted loan. The borrower also avoids the public notoriety of a foreclosure proceeding and may receive more generous terms than he/she would in a formal foreclosure. Advantages to a lender include a reduction in the time and cost of a repossession, and additional advantages if the borrower subsequently files for bankruptcy.

In order to be considered a deed in lieu of foreclosure, the indebtedness must be secured by the real estate being transferred. Both sides must enter into the transaction voluntarily and in good faith. The settlement agreement must have total consideration that is at least equal to the fair market value of the property being conveyed. Generally, the lender will not proceed with a deed in lieu of foreclosure if the outstanding indebtedness of the borrower exceeds the current fair market value of the property.

Because of the requirement that the instrument be voluntary, lenders will often not act upon a deed in lieu of foreclosure unless they receive a written offer of such a conveyance from the borrower that specifically states that the offer to enter into negotiations is being made voluntarily. This will enact the parol evidence rule and protect the lender from a possible subsequent claim that the lender acted in bad faith or pressured the borrower into the settlement. Both sides may then proceed with settlement negotiations.

Neither the borrower nor the lender is obliged to proceed with the deed in lieu of foreclosure until a final agreement is reached.

Good Luck

Evidently Rexpert has better info than wikpedia, I would contact a Real Estate or title comapny in your area for clarification as a Real Estate Attorney is extremly expensive.