• Deed-in-Lieu of Foreclosure

    Important Notice Regarding a Deed-in-Lieu of Foreclosure

    Not all homeowners qualify for a Deed-in-Lieu of Foreclosure  

    We have not yet determined if you are eligible for a Short Sale. The completed application, including all applicable documentation, will be used to evaluate whether you are eligible for a Short Sale; however, OneWest Bank Mortgage Servicing is not obligated to offer a Deed-in-Lieu of Foreclosure or any other foreclosure alternative assistance based solely on the representations and information included in the application. We reserve the right to verify the information submitted and request other information and/or documentation required to fully evaluate eligibility. CIT Bank Residential Servicing follows the Deed-in-Lieu of Foreclosure and foreclosure alternative guidelines permitted by the investor and/or insurers and state regulation to determine eligibility for a Deed-in-Lieu of Foreclosure or foreclosure alternative to the extent permitted under our contractual agreements with the investors who own the loans we service. 

    Credit Reporting on a Deed-in-Lieu of Foreclosure

    If the borrower participates in a Deed-in-Lieu of Foreclosure program, and if the Deed-in-Lieu of Foreclosure is finalized, then CIT Bank Residential Servicing will follow standard industry practice and report to the major independent credit reporting agencies that the mortgage was in default and resolved by acceptance of a Deed-in-Lieu of Foreclosure. We have no control over the impact of this report on the borrower's credit score and are not responsible for any negative consequences as a result of such reporting. To learn more about the potential impact of a Deed-in-Lieu of Foreclosure on a borrower's credit, please go to http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre24.shtm

    Potential Tax Consequences of a Short Sale.

    A Deed-in-Lieu of Foreclosure payoff of the mortgage may have tax consequences. Borrowers are advised to contact a tax professional to determine the extent of such tax liability, if any. Not all Deed-in-Lieu of Foreclosure transactions are eligible for debt forgiveness. We will determine if your transaction is eligible after you apply. 

    Conditions and Requirements for a Deed-in-Lieu of Foreclosure

    In order to complete a Deed-in-Lieu of Foreclosure program there are conditions and program requirements that must be met. The terms and requirements of a Deed-In-Lieu of Foreclosure will be provided in the transaction Agreement. Not all borrowers will be able to satisfy all program requirements and conditions, in which case a Deed-in-Lieu of Foreclosure will not be consummated.

    Housing Counselor Services

    For help exploring your options, the Federal government provides contact information for housing counselors, which you can access by contacting [the Consumer Financial Protection Bureau at http://www.consumerfinance.gov/mortgagehelp/ the Department of Housing and Urban Development (HUD) at http://www.hud.gov/offices/hsg/sfh/hcc/fc/ or by calling the HUD Housing Counselor Directory at 1-800-569-4287 to access a telephone directory of HUD Housing Counselors.

    This is a communication from a debt collector attempting to collect a debt. Any information obtained will be used for that purpose. However, if you have filed a bankruptcy petition and there is either an "automatic stay" in effect in your bankruptcy case, or your debt has been discharged pursuant to the bankruptcy laws of the United States, this communication is intended solely for informational purposes.