Turn On Deed For Free

A: Oversimplified, a "deed in lieu" is exactly how it sounds it is a deed in lieu (instead) of a foreclosure. You give the title back to the lender.A foreclosure means that the lender tries to sell the property at an auction (foreclosure) sale.

A habendum clause is a type of clause specifying the interest a person may acquire and enjoy in a property or land. Habendum clauses are typically found in real estate deeds, wills, property-related agreements and leases, particularly the oil and gas leases.

A house deed is the legal document that transfers ownership of the property from the seller to the buyer. In short, it's what ensures the house you just bought is legally yours.

A deed in lieu of foreclosure should still be avoided whenever possible due to having several negative impacts, some of which can be long-lasting. A deed in lieu still damages your credit quite a bit. The potential for a 125-point drop in your credit score or higher isn't something to be taken lightly.

Many states, such as Pennsylvania, require a deed to have a habendum clause in order for the deed to be officially recorded and recognized by the Recorder of Deeds. Habendum clauses are also found in leases, particularly oil and gas leases. The habendum clause can define how long the interest granted will extend.

Less damage to your credit: A deed in lieu agreement stays on your credit report for 4 years while a foreclosure sticks around for 7 years. Taking a deed in lieu agreement can allow you to buy a new home sooner than if you were to go through a foreclosure.

The person whose name is on the deed has the title to the property. It doesn't matter whether the property was transferred by purchase, inheritance or gift. It's the deed that transfers title. On the deed, you'll find the property's legal description, including property or boundary lines.