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 ?
The bank's wholly-owned subsidiaries include OakFirst Loan Center Inc and OakFirst Loan Center LLC, both finance companies and First OREO Trust and FUBT OREO I LLC, both formed for the purposes of holding, servicing and disposing of the real estate that the bank acquires through foreclosure or by deed in lieu of foreclosure.
and OakFirst Loan Center, LLC, both of which are finance companies, and First OREO Trust and FUBT OREO I, LLC, both of which were formed for the purposes of holding, servicing and disposing of the real estate that the Bank acquires through foreclosure or by deed in lieu of foreclosure. The Bank also owns 99.9% of the limited partnership interests in Liberty Mews Limited Partnership, which was formed for the purpose of acquiring, developing and operating low-income housing units in Garrett County, Maryland.
Defendants defaulted on the promissory note and offered Whitefish a deed in lieu of foreclosure; Whitefish did not accept the deed and filed an action to foreclose and collect the debt.
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.
The property should be a residential foreclosure including a deed in lieu of foreclosure; short sales can be evaluated for possible purchase on a case by case basis.
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. Since then, DiMare, who represented UAL in the 2011 acquisition, has acted as leasing agent and completed a total of 58,000 square feet in new leases to reach zero vacancy.
Most of these homes have already gone thru foreclosure or deed in lieu of foreclosure and are ready for a new buyer.
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.
In other cases there would be a short-sale or possibly a deed in lieu of foreclosure. In these situations, the homeowner knew that the home had become unaffordable and was provided with a graceful way out.
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.