With a deed in lieu of foreclosure, you have the option to voluntarily transfer ownership of your home to your mortgage servicer, Wells Fargo Home Mortgage, if you cannot sell your home at fair market value or prefer to have your servicer sell your home.
A deed in lieu of foreclosure may release you from the obligation to repay your primary mortgage and may help you avoid a foreclosure sale, even if the foreclosure process has already started.
Depending on your situation, you may qualify for a deed in lieu of foreclosure through a number of different programs. These include the federal government’s Home Affordable Foreclosure Alternatives program, Fannie Mae’s Mortgage Release program, and others.
As the homeowner, you:
- Avoid foreclosure and the hassle of court proceedings, and can move on more quickly
- May be released from liability for the remaining balance on your primary mortgage
To get the process started, call to discuss a deed in lieu of foreclosure with a Wells Fargo Home Mortgage representative. Here’s what you can expect:
- You provide us with your financial information, explain your situation and why you are unable to make your mortgage payments.
- We review your information and determine if your mortgage qualifies for a deed in lieu of foreclosure.
- If your mortgage qualifies, you must agree to vacate your property by a certain date and leave your home in “broom clean” condition — emptied of all belongings then swept clean. Plus, you must agree to transfer ownership of your home to your mortgage servicer, Wells Fargo Home Mortgage.
- A representative of Wells Fargo Home Mortgage will accept your keys once the deed in lieu of foreclosure agreement is signed.
Review the Home Affordable Foreclosure Alternatives (HAFA) eligibility matrix (PDF*)
Review the Income Document Requirements for HAMP and HAFA (PDF*)
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Wells Fargo Bank, N.A. is required by the Fair Debt Collection Practices Act to inform you that if your loan is currently delinquent or in default, as your loan servicer, we will be attempting to collect a debt and any information obtained will be used for that purpose. However if you have received a discharge, and the loan was not reaffirmed in the bankruptcy case, we will only exercise our right as against the property and are not attempting any act to collect the discharge debt from you personally.