Being in first position on a loan -- what is the process of foreclosure?

[Dan Griffin]

Can someone explain the process to me of what happens if I lend money to someone and they can't pay? I would be in first lien position.

Do I go through a long and expensive foreclosure process, or is it relatively straightforward and inexpensive to take the house?

[Steve Babiak]

Actually, those suggesting a deed in lieu (DIL) of foreclosure might be giving BAD advice here. If there are any junior liens, and since you state you are the senior lien holder, accepting a DIL would leave all those junior liens in place for you to pay off, whereas foreclosing from the senior-most lien position extinguishes those junior liens.