Dallas-Fort Worth Real Estate Investor Club

Foreclosure vs Deed in Lieu of Foreclosure

  • 28 Mar 2019 6:01 PM
    Message # 7250033

    Which one is best.  DILF seems easier to me if you can get the home owners to agree to it.

  • 29 Mar 2019 12:00 AM
    Reply # 7250309 on 7250033

    Better than either of those would be a short sale. I've completed a number of them. Feel free to call or email me about it. 817-925-2392 Dwayne_Modisette@Yahoo.com

  • 29 Mar 2019 11:05 AM
    Reply # 7251200 on 7250033

    My attorneys told me deed in lieu does not extinguish other liens so its better to do foreclosure. Are they just being overly conservative?

    Thanks,
      Neil Aggarwal
      Property Financing, LLC

  • 31 Mar 2019 11:22 AM
    Reply # 7253306 on 7252883

    I guess my attorney is worried about undiscovered liens, a foreclosure makes sure you own the property without any questions.

    Thanks,
      Neil Aggarwal
      Property Financing, LLC

    Last modified: 01 Apr 2019 11:30 PM | Robin Carriger (Administrator)
  • 01 Apr 2019 10:02 AM
    Reply # 7254852 on 7250033

    Neil is correct. Before you accept a deed in lieu of foreclosure, have a title company do a run for you and see if there are any underlying liens that have been added since you provided the original loan. If there are, especially if one is with the IRS, then you must foreclose. 

  • 01 Apr 2019 1:38 PM
    Reply # 7255371 on 7250033
    If I foreclose is their a way I can get the house back even if someone bids over what is owed to me?  This house fixed up is worth about 140 and the balance on the note is 52-53.  
  • 01 Apr 2019 1:44 PM
    Reply # 7255378 on 7255371
    Robby Smith wrote:If I foreclose is their a way I can get the house back even if someone bids over what is owed to me?  This house fixed up is worth about 140 and the balance on the note is 52-53.  

    Yes, you can bid any amount you like, including higher than what is owed to you.  Whatever the final bid amount, your attorney takes his share, you get paid for the amount remaining on your loan, and the rest goes to the homeowner.

    With those numbers, I suggest you tell the homeowner you are willing to buy the house from them.  You will forgive the loan, pay all closing costs, and give them $10k cash to walk away. That will avoid going to a bid. Make sure you do the purchase through a title company and get a title policy.

    I hope this helps,
      Neil Aggarwal
      Property Financing, LLC

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