First, we'll evaluate you for programs that allow you to keep your house. If there aren't other options, and you have been unable to sell your house through a short sale, a deed in lieu may be possible. You'll need to provide:

• The loan number
• Foreclosure notices or dates you've received
• Subordinate liens on the property, if applicable
• Information on a loan modification, if you were considered for one
• A letter explaining your current financial difficulty

Depending on your circumstances, we may need additional documentation. If so, we'll contact you to let you know what information is needed. You’ll also be connected with a Customer Relationship Manager who'll work with you throughout the process.

After all required documents are received, we'll order an appraisal of the interior of the house to determine the current market value, compare the property's value to the balance on the first mortgage and perform a title search.

The property must be free of any liens, such as a home equity loan or line of credit, when the title is transferred to us. If you have a Bank of America home equity loan or line of credit, we'll take care of getting approvals for a deed in lieu request. If you have a home equity loan or line of credit with another lender, you'll need to ask that lender to send us a Second-Lien Release, indicating their approval for you to pursue a deed in lieu. This process takes approximately 90 calendar days. Please contact lien holders right away to avoid delays.

If a deed in lieu request is approved, you'll get a letter outlining the terms and conditions as well as documents that you’ll need to sign and return.

Once received, we'll prepare the final release documents which will detail your decision to sign the property over to us. You must send us signed, notarized release documents within 14 calendar days.

Once submitted, you may have up to 30 calendar days to relocate, depending on the law in your area. Depending on the loan type and circumstance, you may qualify for funds to help with relocation expenses¹ and other housing debts. We’ll let you know.

When the deed in lieu is finalized, this settles the mortgage and any other loans against the property. The amount of debt satisfied by this transfer of ownership is based on the approved value of the home. In some cases, you may be responsible for a remaining balance of the mortgage debt over and above the approved value (also known as the deficiency).

If we forgive any amount of mortgage debt, there may be possible tax consequences. Please consult a tax advisor for more information about how this could affect you.

We'll report the sale to the major credit reporting agencies as "deed received in lieu of foreclosure on a defaulted mortgage."