A DiL is not a bad option. Most banks actually reject DiL's. Generally, there is no inherent benefit to a DiL except that it gets the property out of your name quicker (which can be beneficial if you have an HOA/HOS or property taxes coming due. But in general, most people find it more beneficial to simply stop paying the mortgage, live in the house rent free until a foreclosure occurs, which can be many months and sometimes years.
A deed in lieu can be a good option for someone that does not want a foreclosure on their record. If the mortgage company will accept a deed in lieu, you should not owe anything else. The deed in lieu can give you some certainty and take the title to the property away. Giving up a home is a significant life changing event. Please consider consulting with an attorney.
I agree. The banks will very rarely accept a deed in lieu. However, you probably have more options than you are aware of. I strongly suggest you sit down with an attorney and find out what option is best for you and your family. Good luck.
A deed in lieu is just one of several options available. Banks do not always accept deeds il lieu of foreclosure. There are strict rules set by banks for the bank to take back the house instead of foreclosing. Some of the banks require that the property be listed with a broker for several months.
It is important that you and your husband meet with an attorney to discuss all of your options. Some other options may include bankruptcy or defense of the foreclosure action or a combination of the two. Because your husband's paycheck is being garnished, a bankruptcy, which can stop the garnishment may be a strong option.
Daniel J. Winter
Offices in Lake County, Chicago, Skokie and Oak Lawn, Illinois
Any advice given is general in nature and cannot be relied upon until the client retains the attorney after a full interview and review of the facts of the situation. No attorney-client relationship exists until a retainer agreement is signed and fees are paid.