Deed In Lieu Of Foreclosure
- lender) in exchange for the release of all obligations under the mortgage. Both sides must enter into the agreement voluntarily and in good faith.
A deed in lieu of foreclosure has advantages for both a borrower and a lender; mainly the avoidance of time consuming and costly foreclosure proceedings. In addition, the borrower avoids some public notoriety, and may even be able to lease the property back from the lender.
The lender needs to assess certain risks which include, among other things, the risk that the property is not worth more than the remaining balance on the mortgage and that junior creditors might hold liens on the property.
Investment dictionary. Academic. 2012.
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deed in lieu of foreclosure — A means of escaping an overly burdensome mortgage. If a homeowner can t make the mortgage payments and can t find a buyer for the house, many lenders will accept ownership of the property in place of the money owed on the mortgage. Even if the… … Law dictionary
Deed in lieu of foreclosure — A Deed in lieu of foreclosure is a deed instrument in which a mortgagor (i.e. the borrower) conveys all interest in a real property to the mortgagee (i.e. the lender) to satisfy a loan that is in default and avoid foreclosure proceedings. The… … Wikipedia
deed in lieu of foreclosure — A deed executed by the mortgagor that transfers ownership in real estate to a lien creditor. This instrument is used when the debtor is unable or unwilling to pay and wishes to avoid foreclosure. American Banker Glossary … Financial and business terms
deed-in-lieu of foreclosure — A deed executed by the mortgagor that transfers ownership in real estate to a lien creditor. This instrument is used when the debtor is unable or unwilling to pay and wishes to avoid foreclosure. American Banker Glossary … Financial and business terms
deed-in-lieu — USA deed in lieu, Also called a deed in lieu of foreclosure. It conveys title to a lender when a defaulting borrower wants to prevent foreclosure. A lender can choose whether to stop foreclosure activity when the borrower requests a deed in lieu … Law dictionary
Foreclosure consultant — means any person who makes any solicitation, representation, or offer to any owner to perform for compensation or who, for compensation, performs any service which the person in any manner represents will in any manner do any of the following:(1) … Wikipedia
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in lieu — in place of . Collins dictionary of law. W. J. Stewart. 2001. in lieu Instead of. For example, a deed in lieu of foreclosure is a deed to a house offered to the lender by th … Law dictionary