Deed in Lieu of foreclosure

4 Replies

I have received word that borrower who defaulted on loan has accepted my proposal for a deed in lieu of foreclosure. Attorney is initiating the documents next week (after labor day weekend). 

Does anyone know if I have the right to begin advertising the property for sale now or do I have to wait?

Originally posted by @Belinda Steinwachs-Dicus :

I have received word that borrower who defaulted on loan has accepted my proposal for a deed in lieu of foreclosure. Attorney is initiating the documents next week (after labor day weekend). 

Does anyone know if I have the right to begin advertising the property for sale now or do I have to wait?

 Personally, I'd wait. It may be tempting to get things moving, but there are many things that can go wrong so I'd wait until it was completed. Technically, the property still belongs to the borrower and you can't sell what you don't own.

I assume your attorney has checked for other liens/judgments that may have attached to the property during your borrower’s ownership. If not, do that first.