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A Deed-In-Lieu is a transaction whereby the homeowner transfers title of his/her property to the lender in exchange for forgiveness of the debt. To complete the transaction, the borrower must first secure the lender’s consent – one may not simply sign over title and expect the debt to be forgiven.
As simple as the process sounds, it is very rare for a lender to accept a deed in lieu. Why? Well, the lender would rather foreclose on the property as a foreclosure sale “cleans” the title of any blemishes, such as junior liens, income tax liens, judgment liens, etc. When a lender simply takes title by a way of deed-in-lieu, the lender takes title with all defects that currently exist.
Still, deed-in-lieu transactions do occasionally occur. If you are considering a deed-in-lieu transfer or your lender has consented to such a transaction, you will need help of a competent attorney to help identify what liability and/or repercussions may result. David Speckman is a CPA, real estate broker and has practiced real estate law for nearly two decades. Mr. Speckman has the knowledge and expertise to advise you of the pros and cons of a deed-in-lieu transaction and to provide assistance at all levels of the transaction. Call today to schedule a confidential consultation with Attorney David Speckman to discuss your unique situation.