This action will not save your home but may aid you in qualifying for another mortgage in the future. This option may have a less negative impact on your credit than a foreclosure. There cannot be any problems with the title to your property, such as outstanding liens that cannot be satisfied. Capital Mortgage Services of Texas will request a title report on your home. If a deed-in-lieu is not completed, the costs of this report will be added to your loan balance. Relocation assistance may be offered.

In a deed-in-lieu process, you voluntarily turn over legal ownership of your home to the owner of your loan in satisfaction of some or all of the obligations under your loan. This action will not save your home but may aid you in qualifying for another mortgage loan in the future. This option may also have a less negative impact on your credit than a foreclosure. There cannot be any problems with the title to your property, such as outstanding liens that cannot be satisfied. Capital Mortgage Services of Texas will request a title report on your home. If a deed-in-lieu is not completed, the costs of this report will be added to your loan balance. Relocation assistance may be offered once the deed-in-lieu process is successfully completed.

You may be eligible for a Deed-in-Lieu if:

• You have a hardship, such as a job loss, divorce, or medical emergency
• Your loan is in default or default is imminent
• You are unable to afford your current monthly mortgage payment
• You are unable to modify your current loan or do not want to retain ownership of your home
• Certain loan owners may require that you have tried to sell your home at fair market value with a licensed real estate agent for at least 90 -120 days and were unsuccessful
• There are no other liens against your home or if such liens exist, you can negotiate with the lien holders to release their interest in your home.

If your loan is owned by Fannie Mae or Freddie Mac, you will be evaluated for a deed-in-lieu of foreclosure based on their specific program guidelines.

In order to apply for a Deed-in-Lieu, please submit the following documents:

• An executed authorization form to allow the title to be pulled on the subject property.
• Once the title is received, title to the property must be free and clear of any and all liens, judgments, and/or encumbrances. (This would include, without limitation, any junior mortgages, HELOCs, homeowners association liens, and any type of judgments or encumbrances.)
• If the loan has Mortgage Insurance, approval from the Mortgage Insurance Company. If approval is needed, additional documents may be required by the Mortgage Insurance Company. Please work with your representative to determine what additional items may be needed.

Upon receipt of all required documents, Capital Mortgage Services of Texas will work to obtain approval for your deed-in-lieu from all necessary parties, including the owner of your loan. However, if you have a second mortgage with another lender or there are any other outstanding debts or liens against the property, it is your responsibility to get them to release their interest in your home.

Once all necessary parties have approved the deed-in-lieu, we will send you the deed-in-lieu documents for signature and return within a stated time period. These documents will include your agreement to vacate your home in good order within an agreed-upon period of time, typically between 14 and 30 days. These documents will also contain the terms of any agreed-upon relocation assistance.

Processing time for a deed-in-lieu is generally 5 days.