Explain Deed in Lieu of Foreclosure
September 16th, 2009
How to explain a deed in lieu of foreclosure?
Most real estate investors find it difficult to explain what a deed in lieu of foreclosure is to their clients, especially during difficult time like foreclosure.
What is the concept of deed in lieu of foreclosure?
The concept of a deed in lieu of foreclosure is simple, but the words are of course tricky and sound too much like legal-ese to a layman homeowner.
While real estate professionals hear the term and instantly know that it means for the bank to accept the property back instead of foreclosing the hard way, a homeowner will likely scratch his head and wonder what going to the bathroom has to do with it.
What is the best way to explain deed in lieu of foreclosure?
The best way to explain a deed in lieu of foreclosure to a homeowner is to simply say that the bank doesn’t want to wait to take your property legally, so if you hand it over now, then they’ll be nice.
I once had to explain that to a little old lady who was born in the house she was being foreclosed on a 68 years of age. Even the word foreclosure made her eyes start to gloss over, but as soon as I said that they bank will play nice if you hand it over sooner, she smiled and immediately knew what it meant.
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