Does a Deed in Lieu skip the Trustee Sale???

Hello Superstars, 

 

Newbie here with a question.  When a seller chooses to go with a Deed in Lieu of foreclosure, does the lender take the property to trustee sale as with a standard foreclosure?  Or does the property skip the foreclosure auction altogether and instantly become REO???

 

Let me know if I need to clarify the question for anyone.

 

Thanks!

Views: 183

▶ Reply to This

Replies to This Discussion

Permalink Reply by Jeff Payne on September 15, 2011 at 6:52am

It skips the trustee sale, think Deeding the property from the seller to the lender.  It does become REO but does not always mean that it hits the market right away.  I have seen them sit for several years before they hit the market.

May I ask? Why do you ask? :)

Permalink Reply by Sandro on September 15, 2011 at 7:18am

Thanks for the reply Jeff.  I don't like the sound of that because it narrows down my options at auction.  Am I correct in thinking the Deed in Lieu program is nearly impossible to qualify for???

 

Do you know the qualifications by chance? 

Permalink Reply by Jeff Payne on September 15, 2011 at 7:24am
Are you a buyer or a seller?  The Deed in Lieu program is not something that we see alot here.  Most go to foreclosure.   Buying a home at auction is something that is hard to do, unless you have cash and even then you are competing against the bank.  You also need to do your homework and make sure that there are no surprises, a title search at minimum is needed before you to go by a home at auction
Permalink Reply by Sandro on September 15, 2011 at 7:45am

Thanks Jeff.  I am a buyer.  Do you know if HAFA Deed in Lieu's are more common or is it the same either way? 

Permalink Reply by Jeff Payne on September 15, 2011 at 7:57am
I am not sure.  HAFA is a joke in my opinion so it is really hard to say from my experience with HAFA.  Either way if they do a DIL, there is no auction to buy the home at, there is no need for a foreclosure auction
Permalink Reply by Sandro on September 15, 2011 at 8:03am

Agreed.  Thanks for the info.  This will help me sift through the garbage when prospecting for auction purchases.

 

I buy at auction when there is a secured "C" buyer already in place.  We target southern CA.  Let me know if you need any short sale commission resucitation as we call it.

RSS

Members

© 2024   Created by Short Sale Superstars LLC.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************