Deed-in-Lieu of Foreclosure

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SPS

Deed-in-Lieu Process

Step 1: Submit required documents

In order to be considered for a deed-in-lieu option, you must provide clear and marketable title and submit a complete application to SPS. We will use these documents to determine your eligibility for our deed-in-lieu option. It is important that you submit the documents to us as soon as possible because we cannot determine eligibility until we receive all required documents.

What documents to submit

Submit the following documents to be considered for foreclosure alternative programs. SPS requires a complete application to receive this review.

Request for Mortgage Assistance
Request for Mortgage Assistance*

To determine the documents required to start the application process, please enter the SPS account number for which you are requesting assistance

Account Number

If you need additional assistance, you may contact one of our experienced Loan Servicing Representatives at (888) 818-6032.
- You can Submit GSE online or Download form
- You can find important information on how to fill out the Borrower Assistance Form in the Borrower Assistance document.
- For information in Spanish you can access the Borrower Assistance Form Spanish Version.
- You can Submit RMA online or Download form
- You can find important information on how to fill out the RMA form in the RMA Guidance document.
- For information in Spanish you can access the RMA Guidance Spanish Version .
- You can Submit RMA online or Download form
- You can find important information on how to fill out the RMA form in the RMA Guidance document.
- For information in Spanish you can access the RMA Guidance Spanish Version .
Proof of Income
- Proof of Income
- * Note that the proof of income is dependent upon the type of income to be considered. Please review the documentation requirements carefully.
View required documents based on type of income
Tax Returns

You must submit a copy of your filed tax return for the most recently completed tax year including all supporting schedules.
If you do not have a copy of your tax return, you can use the IRS 4506-T form to obtain a copy of your tax transcripts from the IRS. Once you receive a copy, you can then submit your transcript to SPS as part of your application. If needed, click 4506T-EZ PDF for a copy of the form.

If you are exempt from filing taxes, please provide a written statement detailing the reason for your exempt status.
Non-Borrower Credit Check Authorization Form

If you would like SPS to use income from a non-borrower residing in the property when determining what options are available for your account, please have that individual complete and return the Non-Borrower Credit Check Authorization Form.
Please note: if income is not considered in the evaluation for your account, you are not required to provide this form.

Non-Borrower Credit Check Authorization Form.

Please note: SPS may also pull a credit report on all customers obligated on the Note as part of the evaluation process.

How to submit documents

For your convenience, we provide multiple methods for you to submit documents. Regardless of the method you choose, please include your account number on all documents.

You can submit documents online, through fax or mail. Click for additional information.

You may follow the Upload Documents link to upload files directly to our website.

You may fax the documents to (801) 293-3936 or toll free (866) 867-3019

Mail your documents to:
Select Portfolio Servicing, Inc.
PO Box 65250
Salt Lake City, UT 84165-0250

Overnight mailing address:
Select Portfolio Servicing, Inc.
3217 S. Decker Lake Dr.
Salt Lake City, UT 84119

Step 2: Establishing Property Value

The current value of the property will be determined by obtaining an appraisal or broker price opinion (BPO), this may include an interior review of the home. If an interior review is required, you or your designated contact will be contacted to schedule a time for the review to be conducted.

Step 3: Speak to a Loan Servicing Representative

The Loan Servicing Representative will be able to answer any questions you have about our deed in lieu program and the required documents. They will also be able to discuss with you any missing or incomplete documents that are required before we can determine your eligibility. You may contact one of our experienced Loan Servicing Representatives at (888)818-6032.

Step 4: Determine Eligibility

Once we have received a complete application, we will review your account to determine eligibility for a deed-in-lieu of foreclosure. It may take up to 30 days to reach a decision. Once a decision has been reached, SPS will send you a notice of the decision.

Step 5: Confirmation of Clear Title

If you are approved for a deed-in-lieu, we will issue a conditional approval letter. Final approval is contingent on providing clear and marketable title. All liens and/or judgments must be cleared to complete the deed in lieu.

SPS will conduct a title search to identify any potential title issues that may prevent the completion of a Deed in Lieu. Title issues can include, but are not limited to:

1. Incomplete chain of title.
2. Unresolved fractional interest in the property.
3. Other liens, judgments, or mortgages encumbering title to the property.
4. Transfer of the title through a tax foreclosure sale.
5. Transfer of the title through an HOA foreclosure sale.
6. Code violations related to the condition of the property.

SPS will attempt to assist you in clearing title issues by using the assistance of a third party vendor, ServiceLink. In the event that title issues cannot be resolved, we will inform you of the reason for denial

If there are subordinate liens and/or judgments on title the below documents will be required for EACH item on title:

Vendor Third Party Authorization

Junior lien authorization form – Authorization for SPS’ vendor , ServiceLink,to discuss loan information with your junior mortgage holder/servicer in order to negotiate/settle a debt on your behalf.
Subordinate Lien Approval

Junior lien settlement approval letter - The approval letter(s) from the junior mortgage holder/servicer must include the amount approved to settle the debt, the date their approval will expire, and it must confirm that the lien will be released as soon as settlement funds are received.

Junior lien chain of title - The junior mortgage holder/servicer should provide an Assignment of Mortgage or Power of Attorney to demonstrate their authority to release the junior mortgage lien.
Recorded Lien Release

Evidence that other judgments or liens have been satisfied and cleared from title. Documentation may include the following:

• Original/Recorded Jr. Lien Executed Release/Satisfaction
• Original/Recorded Tax Sale Redemption Certificate
• Original/recorded Order of Dismissal of personal judgment(s)

*These forms must be completed and signed by all borrowers on the loan.

Step 6: Closing and Vacancy

Once SPS has received all required documents including subordinate lien settlement acceptance letters,a decision notice will be sent. If approved for a Deed in Lieu, you should expect to sign and notarize the documents in the presence of a notary approved by our vendor. Within thirty (30) days of signing the Deed in Lieu documents, the property must be vacant, broom swept and tenant free. After the executed Deed in Lieu documents have been received, SPS will issue checks to the lienholders in accordance with pre-approved settlement terms. In order to complete the Deed in Lieu, any negotiated/settled subordinate lienholders must provide a copy of the recorded lien release and a Power of Attorney validating their authority to release the lien within 60 days of payment. Upon final confirmation that the title to the property is clear of any outstanding liens, we will prepare and record a lien release in full satisfaction of the mortgage, foregoing all rights to pursue a deficiency judgment. If all of the terms and conditions of this agreement are met, the Deed in Lieu will be completed by conveyance of your property to us by general warranty deed or the equivalent in the state where your property is located. Please note that final approval may be required from the note holder prior to completing the Deed in Lieu, and that the note holder may deny the Deed in Lieu at any time.