Wednesday, May 09, 2007

deed in lieu of foreclosure

Just for the record, a deed in lieu of foreclosure does not divest liens and encumbrances.

Almost every time we find a deed in lieu of foreclosure in title, the underlying mortgage sits unsatisfied. In Pennsylvania - I can't speak for other states - the mortgage must still be satisfied of record.

Lenders - PLEASE bear this in mind - and take care of it sooner rather than later. Thank you!!

1 comment:

Diane Cipa said...

Update: I discussed this recently with my underwriter and we agreed that a RELEASE will suffice because we really only want the property cleared. There may be other reasons for the lender wishing to retain a mortgage on record.