Foreclosure, Deed in Lieu & Short Sale
What’s the difference between a foreclosure, deed in lieu of foreclosure, and short sale?
- A foreclosure is when your lender or another lienholder such as a local tax authority completes taking back your house because of nonpayment of mortgage payments or taxes. The information is made public, and there is a public auction of your home.
- A deed in lieu of foreclosure is when you agree to sign your home back over to your lender or lienholder. The finance industry considers this the equal of a normal foreclosure.
- A short sale is when you and your lender agree to sell your home at a price lower than what you owe due to falling home price.