If you have been served with a foreclosure suit or foreclosure complaint, or may be facing one soon, it is important to know that you have options, and that your lender doesn’t want your property.
Deed-in-Lieu of Foreclosure:
Historically, banks would also accept a deed-in-lieu of foreclosure. In other words, an investor could say to XYZ Bank, don’t file a foreclosure suit against me. I will simply deed the property to you, the bank, then the bank would sell the property to repay the loan. However, under such a scenario, if the property value doesn’t significantly exceed the loan amount, the FDIC also requires the bank to set aside reserves because it has an asset that is not generating a return, and more particularly, in case it experiences a loss.
Today, many banks cannot afford to maintain a large portfolio of Real Estate Owned by the bank (”REO”).
Castle Law Group specializes in actively defending mortgage foreclosure lawsuits with the litigation goals of preventing deficiency judgments and 1099’s.