Deed Inlieu Of Foreclorsure Question??
If a person is going into foreclosure , is it likely a Bank will take a deed inlieu of or will they just go the foreclosure route?
If a person is going into foreclosure , is it likely a Bank will take a deed inlieu of or will they just go the foreclosure route?
Depends on how far along they are. If foreclosue set for Dec probably not. Really should contact loss mitigation dept at the mortgage company to get their answer to the question re your property.
Ted Jr
I agree with Tedjr, it depends on several things. My guess is if loss mit aproves they will still defer to their foreclosing lawyer who will take a quick looksy at the title to see what is recorded after their position and may still advise to move forward depending on time frame till sale.
It depends on what is most advantageous for the bank. All things considered (time and money) If they will net the most by taking a deed in lieu and the title is clear, they may. It's just that they move so slowly that it still may hit the courthouse steps.
As a 3rd party Loss Mitigator, I find that most lenders want to see the home listed with a RE agent for 60 days - priced to move quickly. This demonstrates effort on the part of the homeowner. But yes, it may be wise to ask what the lender's criteria is.
C-
The mortgagee would rather accept short than a DIL. The requirements for DIL consideration are much the same as for a short sale.. that the premises be listed for sale at it's as-is, FMV (irrespective of what is owed) and that a good faith effort to sell has been made.
The benefit to the mortgagor is that if the lender accepts a DIL, there is no pursuit for deficiency, and, instead of a foreclosure, the mortgage loan may be reported as paid as agreed.