Who qualifies for deed-in-lieu transactions? Well according to the new rules:
- Homeowners must must be current or less than 90 days late on their mortgage payments.
- Homeowners must by making payments of at least 55 percent of their monthly income for the house.
- Homewoners must be able to document a "hardship" that requires a move, such as loss of spouse.
- The home must be clean and not damaged.
- Homeowners may have to surrender as much as 20 percent of personal assets, excluding retirement accounts, to partially meet the loan's unpaid balance.
- The program does not affect second mortgages. Mortgage servicers can offer up to $6,000 for second-lien holders to release borrowers from the loans, but there's no requirement that the holders agree.
- A deed-in-lieu will still affect your credit, but not to the extent of a foreclosure.
For more information on the program, click here for the new rules.