What is a Deed in Lieu Workout?
With the high number of foreclosures right now, banks and other mortgage lenders are increasingly offering borrowers in default a Deed in Lieu of Foreclosure, otherwise known as a Deed in Lieu Workout Package.
The advantages of a Deed in Lieu Workout Package for banks and lenders are:
● Reduced time / reduced cost when compared to a typical foreclosure repossession
● Greater financial protection if the borrower eventually files for bankruptcy
● Reduced risk of retaliatory vandalism of the property.
There are also a number of advantages to the borrower. A Deed in Lieu Workout Package will allow the homeowner to more quickly repair his or her credit, and avoid a public foreclosure or sheriff’s sale of their home.
Deed in Lieu Title Services
It is vital to have a clear title on the property to execute a Deed in Lieu of Foreclosure. Any additional liens on the property, such as home equity loans or lines of credit, make a deed in lieu less attractive to lenders. If there are any subsequent loans or lines of credit against the property, the bank or mortgage lender will have to assume the liability of those debts from the borrower. This can make foreclosure the more attractive option for the bank. In these cases, it’s up to the property owner to work out other liens against the property on their own and clear the title of other outstanding liens if they still want to avoid a foreclosure.
If your bank or lending company needs reliable, thorough title services to support Deed in Lieu Workout Packages, trust US Title Company. Our experienced staff has more than half a century of combined experience with all types of closings, including Deed in Lieu Workouts.
We boast a standard turnaround of 2 days for title commitments on residential properties, and only 5-8 days for REO and commercial properties. We can rush any order in any state if circumstances require. By relying on us to save you time, you are able to focus your effort in areas that are more beneficial to you and your business.
In emotionally-charged financial situations such as a foreclosure or Deed in Lieu, it’s important to recommend a title company who enhances your reputation for professionalism. US Title Company strives to provide top quality customer care throughout all stages of the closing process, for every type of closing. This includes Deed in Lieu Workouts.