DEED IN LIEU OF FORECLOSURE and PRE-ARRANGED DEED AGREEMENTS

[Bill Gulley]

Here is a current link to issues of deeds given for the cancellation of debt. While it is written for legal eagles, I suggest you read it carefully as to federal case laws cited and the issues faced in lending.

I have seen several suggesting the use of pre-arranged quit-claim deeds as a deed in lieu of foreclosure in providing a loan, it's a bad idea.

While it is addressing conventional lenders, such as banks, it applies to all privately financed transactions, including installment contracts such as land contracts or contract for deeds. These are not specifically mentioned but a DIL is a DIL regardless of the type of note, be it funded by cash or equity.

Discussion? Comments?

Enjoy :)