Why don’t more homeowners in foreclosure execute a Deed In Lieu of Foreclosure?
Loan providers generally do not want to own the property. Once the lender owns the property, they must be responsible for taxes, maintenance and insurance for the property which may be substantial if the home is not in good shape. Some properties have multiple liens on them – tax liens, mechanics liens, code violations, etc. The lender might have an easier time cleaning up the title through the foreclosure process.
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