Voluntary Foreclosure

Homeowners can avoid the foreclosure suit by offering  to transfer all thir rights in the property back to the lender. If the lender agrees, they immediately gain access to the property, but they also lose the right to file a deficiency suit.    If this method is followed, the borrower also has to sign a "Disclosure of Notice and Cancellation."  This form confirms that they are voluntarily waiving their rights to claim and live in the property. Both parties must also file a document with the county recorder stating that they have agreed to do a voluntary foreclosure.