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Are more lenders asking the owners to do an "Deed-in-Lieu of foreclosure'" ?

Posted by Lamanda Jones on January 12, 2010 at 10:12am in Short Sale Discussions
I have had two clients ask me about this in the past wk. My fear is that the banks are simply trying to gain control of the property and leave the liability to the owners. My greatest fear is that if the owner signs the agreement, when will the mortgage company "record" the agreement? Would it not be until they have a sale that is suitable for their wants? In doing so would not the owner of record still be liable for any and all liens placed on the property?

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Replies

  • Lamanda Jones January 12, 2010 at 12:00pm
    Hi Heidi,
    Please explain more of this to me so that I may serve my clients better. I am still concerned about when the agreement will be recorded. Also will this relieve the owner of any of the other liens that may be attached to the property? In a short sale all liens will be cleared at time of closing.
  • Heidi Eliasov January 12, 2010 at 11:24am
    Yes we've been seeing quite a bit of this, one of the beauties of the deed in lieu with a short sale is the seller can get some cash, this would help them get peace of mind about lenders not coming after them for a deficiency judgment, as they received "cash for keys". We process the two simultaneously.
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