Is it possible to do a deed-in-lieu of foreclosure on a HELOC?
The bank who is in first position would be the one who could accept a deed-in-lieu even tho both parties could start foreclosure proceedings. There is also an income tax liability that you want to take a closer look at too. These days, with the market being the way that it is, it sometimes makes more sense to work with your lender to modify your loan so that your payments are affordable and you keep the property. There are lots of factors to consider before they agree to modify your loan, but they have departments set up for just that. It also helps if you have a lender do the negotiations for you, since they know how to speak the language. Let me know if I can help but don’t wait until it’s too late.
