Updated about 9 years ago on .
confession of judgment/deed in lieu of foreclosure question
legal question for an illinois attorney lawyer or anyone who does seller financing:
is it legal to write a confession of judgment into a seller financing loan contract on an investor deal, essentially having the buyer waive his right to due process, and then have them pre-sign a deed in lieu of foreclosure that would be held in escrow by an attorney and recorded after the default?
i talked to an attorney about this, and she said that it is legal, but is there any case law out there that supports this action in case of a default?
i know it is one thing to write this into the contract, but another to actually carry through with it and have it stand up in case a defaulting buyer decides to sue after i took a property back.
i know it wouldn't work for an owner occupied deal, but investors aren't protected like owner occupants are. i'm getting ready to sell a property on a 10 year mortgage and would really appreciate any feedback on this issue.