Deed in Lieu--Is this corrrect? - Posted by able learner

Real Estate Investing Real Estate Law
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Posted by John Merchant on January 13, 2007 at 15:07:39:

Don’t know what you mean by DIL “and the new deed” but DIL is given you by the person in foreclosure, you record it if you wish and it’s your house.

Then when you sell, if you’re giving title and deed to new buyer, THEN your DIL is recorded prior to the new deed you’re giving so as to provide continuity of title.

DIL is just a Grant Deed or Warr. Deed, no such thing as a separate kind of deed called DIL…this is merely a process whereby the guy gives you a deed in lieu of being foreclosed upon.

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Deed in Lieu–Is this corrrect? - Posted by able learner

Posted by able learner on January 13, 2007 at 13:23:58:

Is this correct?

In a ?Deed in Lieu of Foreclosure? the debtor agrees to hand the deed to the note holder and both parties skip the foreclosure process.

Normally both the “Deed in Lieu” and the new Deed are executed in the same moment.

Able

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Re: Deed in Lieu–Is this corrrect? - Posted by River City

Posted by River City on January 15, 2007 at 16:26:06:

The lender has to be in agreement to do the Deed-in-Lieu or all bets are off. You can’t just sign over the deed and expect everything to be even without the lender’s written authorization to do so. The different agencies (FNMA, FHLMC, VA, FHA, and the PMI companies if they are involved)handle deeds-in-lieu differently. So, it is not a simple matter of just signing over the deed. You must work closely with the lender to get all of the details worked out. You want them to wipe the slate clean of all balances.

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Re: Deed in Lieu–Is this corrrect? - Posted by David Krulac

Posted by David Krulac on January 14, 2007 at 22:56:28:

  1. there is no “new Deed”, the deed from the debtor to the lender is all there is.

  2. a deed in lieu, does NOT discharge junior mortgages, judgements, mechanics liens, taxes, utilities etc. etc. etc. so if you are the lender or a sucessor in title to the lender, be darn sure of the state of the title or you could get burned.

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Re: Deed in Lieu - Posted by John Merchant

Posted by John Merchant on January 13, 2007 at 15:09:12:

Don’t know what you mean by DIL “and the new deed” but DIL is given you by the person in foreclosure, you record it if you wish and it’s your house.

You then record the deed back to you leaving you in the same status as before you sold it to the now-gone buyer.

DIL is just a Grant Deed or Warr. Deed, no such thing as a separate kind of deed called DIL…this is merely a process whereby the guy gives you a deed in lieu of being foreclosed upon.