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Buying a home is a major responsibility. If you’re unable to continue paying the mortgage on your house, what happens next? You’ve heard of foreclosure, which can result in losing your home and be financially damaging. But there’s another option called a deed in lieu of foreclosure, which may be less stressful than foreclosure, have less of a negative impact on a credit report, and may be faster to complete.

Here’s what you need to know about a deed in lieu of foreclosure, and when it might be an option to consider.

What Is a Deed in Lieu of Foreclosure?

Where a foreclosure may involve the court and a lengthy process, the alternative, a deed in lieu of foreclosure, is fairly simple.

If your lender agrees, you hand over the deed to them and the lender releases the lien on the property. You may be released from any balance you owed on the mortgage (however, there may be exceptions if you owe more than the home is worth).

And while a deed in lieu will appear on your credit report, it doesn’t have as severe an impact as a foreclosure.

The lender might even offer you financial assistance to spruce up the home to make it more sellable.

Recommended: Tips On Buying a Foreclosed Home

Working With the Lender

Your lender may only consider a deed in lieu of foreclosure in certain situations.

For instance, the lender might require that you first put your home on the market as a short sale or explore a loan modification.

If you’re completely unable to pay, start by contacting your lender and asking if a deed in lieu of foreclosure is an option. If it is, you’ll be given an application and asked for documents proving your inability to pay the mortgage. The documents will show your income and expenses, as well as bank account balances.

This process can take 30 days or more.

If your application is approved, you may want a real estate lawyer to review it to help you understand whether you are fully released from the financial obligations tied to the mortgage. For example, if the lender sells the home for less than the remaining mortgage balance, are you responsible for that deficiency?

Once you are comfortable with the title-transferring agreement, you and the lender will sign it, and it will be notarized and recorded in public records.

At this point, you will be notified how long you have to leave the home.

When to Consider a Deed in Lieu

One instance when a deed in lieu may be a good idea is if you owe more on your home than it is worth, as long as the agreement stipulates that you won’t owe the difference between the value of the home and what you owe.

If you are unable to continue paying your mortgage, it’s important to know that a foreclosure will leave a nasty mark on your credit report for seven years and make it difficult or impossible for you to take out another mortgage for years.

A deed in lieu will appear on your credit report, but it may not have the same lasting effect. Your credit score will drop, but long term, it may not affect your ability to take out a loan.

Benefits of a Deed in Lieu

There are advantages for both the borrower and the lender when it comes to a deed in lieu. For both, the big benefit is not having to go through the long and expensive process of foreclosure.

Because a deed in lieu is an agreement between you and the lender and not an order from a court, you may have a little more flexibility in terms of when you vacate the property.

With foreclosure, you are sometimes forced to vacate within days by local law enforcement. With a deed in lieu, you may even be able to work out an arrangement where you rent the property back for a period. The lender gets a little rent money and you have more time to figure out your next move.

In addition, this option is more private than a foreclosure.

From the lender’s perspective, the benefits of a deed in lieu include avoiding litigation and court time.

Drawbacks of a Deed in Lieu

There are disadvantages as well. A deed in lieu will appear on your credit report, even if it’s not as damaging as a foreclosure. Plus, it may still be difficult to get another mortgage in subsequent years.

It may still be difficult to get another mortgage in subsequent years.

If you owe more than your home is worth, you may still be on the hook for the difference between the appraised property value and what you owe.

You may be denied a deed in lieu if there are other liens or tax judgments on the property, or if the home is in bad condition and requires maintenance to sell.

Recommended: Home Affordability Calculator

Being Smart About Your Mortgage

The best thing to do, if at all possible, is to avoid getting into a situation where you can’t afford to pay your mortgage. If you’re having short-term financial issues, talk to your lender immediately to see if there is the possibility of delaying a few months’ payment or setting up a loan modification so you can work to pay off your outstanding debt.

Typically, the lender will want to help you; it’s easier to work out an agreement now than several months down the road, when you haven’t paid your mortgage at all and are facing foreclosure.

If you do end up in a situation where you are unable to continue paying your mortgage and you aren’t offered options, consider a deed in lieu of foreclosure as a faster and easier solution than a foreclosure.

If you’re just starting to consider buying a home, create a budget and calculate how much in mortgage payments you can afford each month. Don’t forget to calculate insurance and interest as well. Make sure that you won’t be stretched thin financially.

Recommended: Mortgage Calculator

The Takeaway

If you can’t pay your mortgage and you’re unable to get a short sale or loan modification approved, a deed in lieu of foreclosure may be the best option. Rather than go through the foreclosure process, a deed in lieu allows a borrower to sign a property over to the lender.

Your credit will take a significant hit, though not as bad as with a foreclosure.

If you’re looking for a home mortgage or a cash-out refinance, SoFi offers a range of competitive and flexible options, with a mortgage loan officer guiding you every step of the way.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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If you’re considering in vitro fertilization, or IVF, out-of-pocket costs may be one of your major concerns.

The average cost of one IVF cycle in the United States is around $10,000 to $15,000, according to the Society for Assisted Reproductive Technology . That doesn’t include the cost of medications, fertility testing, and procedures that may be necessary to ensure the success of IVF. And, most patients undergo multiple IVF cycles.

The total cost for IVF treatment can be daunting for many would-be parents. However, there may be ways to lower your out-of-pocket expenses, including insurance coverage for some procedures and medications, discount programs, grants, and financing.

Read on for a closer look at how much you can expect to pay for IVF treatment, plus strategies to help make this treatment more affordable.

How Much Does IVF Actually Cost?

While a fertility clinic may charge $10,000 to $15,000 for one IVF cycle, that number does not include the cost of add-on (often necessary) procedures. The total bill from a fertility clinic for a cycle may more likely fall between $15,000 and $20,000.

Keep in mind that the clinic’s fee likely won’t include medications, including the price of the injectable hormones (which can run anywhere from $3,000 to $6,000-plus). You typically pay for these costs directly to the pharmacy filling the prescription.

Other addition fees you may have to cover include:

•   Donor sperm ($300 to $1,600)

•   Fertility assessment ($250 to $500)

•   Semen analysis ($200 to $250)

Does Insurance Cover IVF?

Many insurers offer at least some coverage for fertility treatments. Certain states have laws that require employers to provide fertility benefits. However, which treatments must be covered and who qualifies for coverage is different from state to state. Also, small employers are often exempt from these laws.

It can be a good idea to reach out to your insurer before beginning treatment and to make sure you understand exactly what is — and is not — covered. Some questions you may want to consider asking include:

•   Which fertility treatments are covered?

•   Will I have to pay for initial treatments out of pocket until infertility is determined?

•   Are initial consultations at a fertility clinic covered and, if so, how many? Knowing this can help you decide if you want to visit several clinics before choosing one.

•   Is diagnostic testing covered? Some policies might not cover IVF, but do cover blood work and ultrasound monitoring.

•   Are medications covered? If so, you may also want to find out if they need to be filled at a specific pharmacy.

•   Do I have to first try intrauterine insemination (IUI) or spend a certain number of months trying to conceive before qualifying for IVF?

•   Is there a cap on my coverage — such as a limit on total cost or number of cycles?

Recommended: Beginner’s Guide to Health Insurance

How to Pay for IVF

While the high price tag for IVF can be off-putting, there are ways to make IVF more affordable, along with several different IVF financing options you may want to consider. Below are a few strategies to help pay for IVF.

Working with your clinic. Many fertility clinics offer payment and financing options to help make IVF more affordable. Some also have refund programs, in which you pay a set fee for treatment (maybe $20,000 to $30,000) and the clinic will refund part of your money if you don’t get pregnant after three or four IVF cycles. Some clinics even have lotteries for free cycles or money to use toward a cycle.

Tapping family for help. It can be helpful to talk to close family members about your situation, fertility treatment plans, and the costs involved. If they’re in a position to help, would-be grandparents might be happy to gift money knowing that it is to be used for fertility expenses.

Enrolling in a clinical study. You could possibly qualify for an IVF clinical study, which can reduce the cost of treatment. One good place to start your search is ClinicalTrials.gov .

Applying for a grant. A number of nonprofit organizations, such as Baby Quest and the Starfish Infertility Foundation , offer grants and scholarships to those who cannot afford to pay for IVF. Qualifying for a grant may be based on various factors, including income and location.

Taking out a loan. While some fertility patients use credit cards or cash out a retirement account to pay for IVF, taking out a personal loan can sometimes be a better option. A personal loan can be used for almost any expense, including IVF, and typically comes with a lower interest rate than credit cards.

Using an FSA or HSA. Putting funds into a flexible spending account (FSA) or health savings plan (HSA) can help make IVF treatments more affordable.

Making a Financial Plan

Once you have compiled information about costs and coverage, you may want to take some time to set both treatment and financial goals.

It can be easy to get caught up in the immediate needs of fertility treatments, but taking a moment to think about big-picture financial goals can help you keep things in perspective and provide a roadmap in the event that a pivot is needed.

For example, you may want to discuss with your partner how many IUIs you might have before moving on to IVF, as well as how home many IVF cycles you will want to do before considering other steps, such as using a sperm or egg donor or using a surrogate, or when/if you might consider fostering or adoption.

Each step in the fertility treatment process can cost money and having a rough roadmap of what you’re considering can help you budget for the costs.

The Takeaway

IVF treatments can be expensive, but there are strategies aspiring parents can use to manage the costs. These include understanding (and maximizing) your health insurance benefits, looking to family for help, applying for a grant or a clinical trial, tapping health savings accounts, and taking advantage of financing plans offered through your fertility center.

Another way to help pay for these costs is to take out a personal loan. Some lenders actually offer personal loans specifically for this purpose, called IVF loans.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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Choosing to adopt a child is an exciting milestone in life, but it’s also one that takes a lot of planning and effort. Future adoptive parents can opt for either a domestic adoption or international adoption, but there are a lot of differentiating factors that may influence the decision.

If you’re considering adoption, you’ll want to understand the distinctions between domestic and international adoptions, from the process and timeline to the costs involved, so you can decide what’s best for you.

The Domestic Adoption Process

One of the major advantages of choosing a domestic adoption is that you have the potential to adopt a newborn. However, the timeline is not set in stone and may depend on whether you opt for an open, semi-open, or closed adoption. Most domestic adoptions are considered at least “semi-open.”

Depending on the agency you work with, you may need to be chosen by a birth mother based on your profile. Once you’re selected, the timing depends on the expected (and actual) due date. The process usually takes a few months. Typically, you get access to the child’s medical records as well as the birth mother’s family history.

An open adoption also allows some contact and conversations with the birth mother before the baby is born. In a semi-open adoption, personally revealing information is withheld between the adoptive parents and the birth mother.

Once the baby is born and you officially adopt the child, the adoption agency may facilitate sending updates to the birth mother, as well as pictures so she can see the baby is well taken care of.

Domestic Adoption Eligibility Requirements

American adoption requirements vary by state and by the adoption agency you choose to work with. Generally, you must be at least 18 years old, and there’s often a minimum age difference required between you and the child.

Most states allow domestic adoptions regardless of marital status; parents can be married, single, divorced, or widowed and still qualify.

Explore your state and city adoption websites for more details on additional requirements unique to your area.

The International Adoption Process

International adoption, thanks to rules and clearances, typically will not involve a newborn, so you’ll need to be open to welcoming an older baby or toddler to your home.

With international adoption, there are issues that could affect your ability to adopt, even in the middle of the process. New international laws and relations between the United States and other countries have the potential to derail families who are in the middle of an adoption. The process varies by country but typically takes between 1.5 and 2.5 years.

While you can find out about the child’s medical history, you likely won’t know anything about the family history. Once you adopt a child from abroad, you won’t have any contact with the birth family.

International Adoption Eligibility Requirements

Each country has its own eligibility requirements for adoptive parents, which are typically much stricter than domestic requirements. Often you’ll need to meet income requirements, which may include a higher amount if you already have children. Some countries also have net worth requirements.

In addition, you may discover that some countries restrict the type of families that are allowed to adopt from there. For example, some only offer adoption to married couples or single women.

These rules vary by country, and there are some countries, such as Colombia, that allow single men and same-sex partners to adopt.

International vs Domestic Adoption Costs

The costs vary greatly with both international and domestic adoptions, but the common thread is that it can be expensive if you’re not adopting a foster child.

For international adoptions, expect to pay anywhere from $20,000 to $50,000, depending on the country.

In South Korea, for example, adoptions may cost between $32,000 – $38,000. In China, the range is $35,000 to $40,000. Adoptions from India may span $21,000 to $25,000.

Choosing an international adoption also requires you to travel to the country (often more than once) in advance of actually adopting your child.

Domestic adoptions through a private agency may cost between $30,000 and $60,000.

It is much less expensive, and potentially even free, to adopt through foster care. However, as a foster parent, your goal is to help reunite the child with the existing family. Adoption may become an option, but it is not the primary objective.

Recommended: Common Financial Mistakes First-Time Parents Make

Funding Options for Adoptions

Adoption costs are often out of reach for many U.S. families. But even if you can’t tap into your savings (or don’t want to), you can explore other options for funding your adoption.

Recommended: 5 Tips for Saving for a Baby

Employer Benefits

Some companies offer adoption assistance funds as part of their employee benefits packages. In addition, about 34% of employers offer paid adoption leave and 25% provide paid foster child leave. This provides flexibility to transition when a new family member arrives.

You may want to check with your HR department to make sure you don’t miss out any adoption benefits offered by your company.

Adoption Federal Tax Credit

The federal government provides some tax benefits for adoptions. First, if you use employer benefit funds to pay for the adoption, that money is excluded from your income so you don’t have to pay federal taxes on it.

The tax code also offers an adoption tax credit that can help offset some of the costs involved in adoption, whether you adopt for a domestic or international adoption. Qualified adoption expenses include things like adoption fees, legal costs, and travel expenses.

The tax credit amount changes every year, so it’s a good idea to talk to an accountant for more specifics.

There are income limits for qualifying for both the tax exclusion and credit.

Friends and Family

Many adoptive parents ask friends and family members for financial support when starting the adoption process. You could even start a crowdfunding campaign as a way for your broader community to donate to your adoption fund.

Hopeful parents may want to include a compelling personal story about the path to adoption to help draw in potential donors from their community.

Just remember that if you use a crowdfunding platform, you generally have to pay fees taken out of the money you’ve raised. This usually ranges from 3% to 8% when including both fundraising fees and processing fees.

Recommended: New Parent’s Guide to Setting Up a Will

Personal Loan

Another option for financing your domestic or international adoption is with an unsecured personal loan.

This type of loan typically comes with a fixed interest rate and repayment period, which allows you to make a set monthly payment over a set number of years.

You’ll need good credit to qualify for the best interest rates. Lenders may also take your debt-to-income ratio into consideration. You may qualify for a larger loan amount if your existing debt is low compared to your monthly income.

Sometimes referred to as an adoption loan, the proceeds from this type of loan can be used for just about anything. That means not just the agency and legal fees but also soft costs like travel and meals, which can get expensive if you’re adopting from abroad.

The Takeaway

Choosing to adopt a child can be life-changing, but an international or domestic adoption usually carries a high price tag. Fortunately, with tax benefits and funding options available, you can worry less about how to pay for all of the costs associated with the process and focus more on the joy of growing your family.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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