deed in lieu of foreclosure


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deed in lieu of foreclosure

An instrument transferring title to real property to a mortgage lender without the necessity of going through the foreclosure process. Called the deed in lieu (pronounced “loo”) for short, the procedure is attractive to lenders because of the speed, lack of any defenses, and removal of anxiety about last-minute borrower bankruptcy. It is attractive to borrowers because there is no foreclosure to appear on the credit records.There is some risk to the lender if there are intervening liens,because a deed in lieu transfers title to property subject to the effect of any junior liens.Usually a foreclosure destroys other liens,if they were recorded after the mortgage or deed of trust.

Deed in Lieu of Foreclosure

Deeding the property over to the lender as an alternative to having the lender foreclose on the property.

See Payment Problems/Position of the Lender/Permanent Problem.

References in periodicals archive ?
A deed in lieu of foreclosure is a transfer of title in real property from the property owner to the lender, in order to avoid foreclosure or to cease the process.
You might recall the bank entered the ownership picture through a deed in lieu of foreclosure as part of a June 2009 settlement to end cross litigation between the bank and Combs.
The transaction completes a building repositioning that started in 2011, when United American Land (UAL) acquired the vacant property's defaulted mortgage and deed in lieu of foreclosure.
Additionally, the company mentioned that before the end of the second quarter it completed the transfer of the Boulevard Mall in Las Vegas, Nevada to its lender via a deed in lieu of foreclosure, completed in a tax-efficient manner as part of a 1031 exchange, which is expected to improve its overall leverage and operating metrics.
Most of these homes have already gone thru foreclosure or deed in lieu of foreclosure and are ready for a new buyer.
OTC: FFFC) and Net Life Holdings said their new innovative mortgage product will target the large demographic group of boomerang buyers, previous homeowners who have experienced foreclosures, short sales and deed in lieu of foreclosure circumstances in their past.
Now the firm has discovered that far from being averse to the mortgage market, almost 80% of its former clients surveyed expressed a desire to purchase another home within a year after losing the first one in a foreclosure, short sale or deed in lieu of foreclosure.
The Portland-based lender last month took ownership of a sprawling subdivision in the Laurel Hill Valley neighborhood from East Ridge Development LLC in a deed in lieu of foreclosure.
When home retention is not an option, sometimes VA can help arrange a sale or deed in lieu of foreclosure, which are better options for veteran borrowers than foreclosure.
In 2009, he defaulted on the mortgage and offered to hand in the keys to Riverton in a deed in lieu of foreclosure.
Gain or loss from a foreclosure, or the transfer of a deed in lieu of foreclosure, is generally characterized as either Sec.
As part of an earlier agreement that the bank made with state attorneys general in October, it has allocated up to USD150m nationwide to assist certain borrowers who experienced a foreclosure, short sale or deed in lieu of foreclosure on mortgages originated by Countrywide Financial Corp.