When To Deboard A Loan

[Chris Seveney]

Question came up and curious as to how others treat this. The question came up where a lender had a property in foreclosure and it is currently uncontested as the borrower is deceased. The lender wanted to deboard the loan prior to the foreclosure sale.

I always keep my loans boarded with a servicer up until foreclosure due to the low cost for the "insurance policy" of keeping with a servicer. Also in judicial states you have to certify the amount and its much easier to do with a servicer, then there is the issue of whether you need a license to service in that state. But assuming you can self-service, do you ever deboard loans early?