Deed in Lieu of Foreclosure in connection to loan
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hermie
Apprentice
Joined: 11 Nov 2005
Posts: 1
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 Posted: 09/28/08 - 07:54 Post subject: |
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| Hello there people. Couple of days ago, I started collecting information about a mortgage since I am interested in getting one. I would like to ask you what Deed in Lieu of Foreclosure is in connection to the loan. Can any of you explain to me what it is and how does it work? Thank you. |
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leicester
Apprentice
Joined: 22 Jan 2006
Posts: 1
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| Posted: 10/13/08 - 05:53 Post subject: |
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| Hello. Well, here’s the thing. Deed in Lieu of Foreclosure is a legal instrument, or deed like the name says, in connection to the loan which give the lender right over property in case of mortgage default. So Deed in Lieu of Foreclosure happens when the borrower is not able to pay back the loan. If this deed exists, foreclosure is usually avoided, which spares both parties from lots of time and trouble. That would be all. Bye! |
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fidole
Apprentice
Joined: 25 Sep 2005
Posts: 1
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| Posted: 10/28/08 - 03:52 Post subject: |
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| Hello hello. Here is what I can tell you about this subject. Deed in lieu of foreclosure happens in case of default. Basically, if mortgagor cannot pay back the loan, this deed comes into effect. It transfers the right on property from borrower to the lender. After it happens, borrow is released from debt and lender is saved from some costs. So, this process is benefitial for both parties in the mortgage. |
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