Re: foreclosure
Posted by Jim V on July 31, 2007 at 23:42:46:
In Reply to: foreclosure
Posted by Brenda on July 31, 2007 at 19:36:26:
Brenda,
Deed in lieu of foreclosure is basically giving the lender the deed to the property without the lender pursuing a foreclosure action.
Lenders do not prefer a DIL because any title problems with the property will stay with the property when the deed is accepted. Junior liens, like a second or third loan, will also stay with the property, which will often make it unattractive for the lender.
If you have nominal equity in the property, a short sale is usually considered a "more acceptable" option for both the homeowner and the lender.
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