• Deed-in-lieu Frequently Asked Questions

    • What is a Deed-in-lieu?

      A Deed-in-lieu is where the property is transferred back to the bank before a foreclosure process is completed.

    • What is the basic process?

      Upon the receipt of your Deed-in-lieu request and all required documents, we will order an evaluation of the property (to which we will need interior access to the home to complete) and will request a title search. 

      Please note that the title must come back free and clear of any additional liens. If additional liens are present, you or your authorized agent must work with these parties to clear them. OneWest will not negotiate with additional lien holders to clear them. 

      If the title is clear and marketable, and the Deed-in-lieu is approved by the investor, if documents and the approval letter will be sent to you to sign and return. Once the approval is sent, if you have not yet vacated, it is preferable that you will have the home vacated and in "broom-swept" condition (fixtures and appliances in place; minimal damage) within the time frame given on the approval letter. 

      Once you have signed and returned the Deed-in-lieu documents and the home is verified as vacant, we transfer ownership from you to the bank

    • If approved, how will completing a Deed-in-lieu affect me?

      If a Deed-in-lieu transaction is completed on your property, we will report that your loan was in default and resolved by acceptance of a Deed-in-lieu of foreclosure. If you have questions about how a Deed-in-lieu will affect your credit score, tax situation, or other legal situations, please consult a tax accountant, tax attorney, or real estate attorney before considering this option.