12-19-13 The MSN Real Estate section published the above article that caught my attention. It mentions the Short Sale and the Deed-In-Lieu of Foreclosure. The Short Sale most of us have heard about. Few have heard of the Deed-In-Lieu of Foreclosure.
The deed-in-lieu of foreclosure is a fairly simple process. The borrower or the lender prepare a Deed that gives ownership to the lender. This would require the borrower to have the Deed notarized and then either party has it recorded in the appropriate county. This is a simple process, though it leaves many questions to be answered:
1) What are the tax consequences to the borrower. Can a signed agreement read that this action is for full satisfaction of the debt? Thus avoiding a taxable event with your state and federal government. Check with a professional accountant or lawyer.
2) When does the borrower have to move out?
3) Will the borrower incur any costs?
4) Will the lender provide the borrower with some cash to leave?
5) What condition does the borrower have to leave the property in?
Depending on your lender, this can be a very speedy process. Or, it can be similar to a short sale….slow.
Of course, we’d be happy to discuss your situation and see what we can provide for you! Just go to the
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