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Posted by on Feb 14, 2011 in Deed In Lieu of Foreclosure, FAQ, Short Sales | 0 comments

What is a Deed In Lieu Of Foreclosure?

What is a Deed In Lieu Of Foreclosure?

There’s a lot out there written about Deed In Lieu of foreclosure and you can take it however you want.  The real question you should ask yourself is

Why is the bank so excited about a Deed In Lieu?

It’s because it saves them money on foreclosing on you and still allows them to keep the rights of going after you.  In fact, it strengthens their position AGAINST you since you willingly gave up.  In addition, it helps with their insurance claims.

Most of the time, a deed-in-lieu is offered after a failed short sale attempt.  I won’t go into why short sales fail here, but if a seller accepts a deed in lieu, they are basically surrendering to the bank.

In case it wasn’t clear from the above.  Deed in lieu of foreclosure is a foreclosure without the legal process.

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