When you sign a deed in lieu of foreclosure, do you still have to pay back the interest that you are behind?
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When you sign a deed in lieu of foreclosure, do you still have to pay back the interest that you are behind?
What I thought is when you do a deed in lieu of foreclosure, that meant you were giving the house back because you could not afford to pay.
Asked on January 21, 2013 under Real Estate Law, Texas
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Under the statutes of all states in this country, if the property owners signs a deed in lieu of foreclosure and the lender accepts it by recording the document in the country where the distressed property is located, the property owner owes nothing further to the lender under the loan.
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