Deed in Lieu of Foreclosure (Mortgage Release)
Releasing your home to Weststar Mortgage
With a deed in lieu of foreclosure, you transfer ownership of your home to Wells Fargo Home Mortgage voluntarily, instead of through foreclosure.
How a deed in lieu of foreclosure could help
- You pay no fees.
- You avoid a foreclosure sale, even if the foreclosure process has already started.
- You may be released from your obligation to repay the remaining mortgage balance.
- In most cases, you don't have to try selling the home yourself before becoming eligible.
Important considerations
- In rare cases, homeowners have to pay a deficiency balance at closing or afterward. A deficiency balance is the dollar difference between the mortgage balance due and the sales proceeds. We'll let you know if this applies to you before you commit to transferring the property.
- If you don't have to pay the deficiency balance, you may have to report that amount as income for tax purposes. Consult your tax advisor.
- After the deed in lieu of foreclosure is signed, a Wells Fargo Home Mortgage representative will accept your keys.
- A deed in lieu of foreclosure may be more complicated if you have home equity financing or other liens against your property.
Call (800) 640-0635 for help with your payment issues.
Where appropriate, Weststar Mortgage Corporation. is required to inform you that, as your account servicer, we are attempting to collect a debt and any information obtained will be used for that purpose. However, if you are a customer involved in an active bankruptcy case or you received a discharge in a bankruptcy case where the account was not otherwise reaffirmed or accepted from discharge, then this notice is being provided to you for informational purposes only, and this is not a bill or a request for payment as to any such customer(s).