Deed In Lieu Of - Posted by Tom

Posted by Rick the Probate Guy on August 01, 2008 at 02:38:29:

Consider using a standard grant deed and modify it to include the normal D.I.L language.

Also, I like to add both estoppel language and indemnification in case of problems down the line.

Lastly, I prefer to accept title in another entity vesting OTHER than my loan bene vesting just in case you still need to foreclose on the TD at a later date to perfect title, etc. Accordingly, your D.I.L agreement should not have language restricting your ability to foreclose on the TD; that would be counter-productive.

The reason you’ll want to take title in another entity is that if you don’t, recording a deed (back) to the lender of record will extinguish the trust deed by way of a merger of interest. If you loose the benefit of the trust deed, you can’t foreclose should this become req’d and then you’d probably have to go the quiet title action route. THis avoids that hassle.

All said, this keeps your options open.

Deed In Lieu Of - Posted by Tom

Posted by Tom on July 31, 2008 at 16:14:29:

I sold a property using owner financing. My buyers are not able to make their payments and want to sign the property over to me. I have done an abstract and found no other liens against the property.

These are really nice people who just lost their job because of the economy. I would like to make the transition as comfortable to them as possible.

Why do I need to use a deed in lieu of, which will go on public record, as oppose to their just deeding the property back to me, so to the world it looks like a conveyance, and not something to prevent foreclosure.

Thanks

Deed IL would be recorded deed nt - Posted by John Merchant

Posted by John Merchant on August 04, 2008 at 09:38:25:

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