Real Estate Law
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A deed in lieu is a negotiated settlement. So, you can work out the terms with the lender. That would include cash for keys, the stipulation that the value of the property equal the unpaid balance (so that it is not reported as income to the IRS), and even how it is reported to the credit reporting agencies.
Your credit will take a hit, but do not be afraid to ask for these things from the lender.
You may also want to see if the lender would agree to a short sale. Then you could reduce the price.
In any event, you find it helpful to retain an attorney to negotiate for you. If you need assistance finding local counsel try Martindale Hubble (site rules prohibit us from referring specific attorneys) . Many attorneys themselves use this site to locate attorneys outside their jurisdiction or expertise:
http://www.martindale.com/Find-Lawyers-and-Law-Firms.aspxIt is a huge worldwide database searchable by location and specialty. The attorneys are all peer rated. So, they represent the top of the profession.
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