Foreclosure alternative available; deeds in lieu offer a number of advantages

Article Abstract:

Deeds in lieu of foreclosure have advantages for both lender and borrower over the foreclosure process and should be considered in a time of weak real estate markets. Deeds in lieu save time and money for both lender and borrower. The borrower avoids further liability under the mortgage, will avoid the negative publicity associated with foreclosure, and may be able to get a release of any environmental indemnities and guarantees linked with the loan. Probable advantages for the lender include the borrower's cooperation in the usual due-diligence reviews on the property.

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HUD slams the 'shams' with rules on a lender's ability to pay employees for referrals, join in certain business arrangements and lock out the competition

Article Abstract:

The US Department of Housing and Urban Development has issued a final rule on their policy under Section 8 of the Real Estate Settlement Procedures Act. This new rule affects whether lenders and other providers of residential real estate settlement services can pay employees for referrals or participate in other controlled business arrangements. The rule prohibits the payment of referral fees and details how controlled business arrangements will be evaluated. The rule will result in major changes in the structure of the residential real estate lending marketplace.

United States. Department of Housing and Urban Development

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'Friendly foreclosures' mitigate lenders' losses; recent decision helps bolster lenders' right to cut off liens

Article Abstract:

The frinedly foreclosure solution arose from the commercial real estate difficulties of the late 1980s and gave lenders a way to deal with the losses caused by distressed real estate loans. The main advantage of friendly foreclosure is the ability of lenders to cut off subordinate liens, but such foreclosures must be carefully structured to also effectively extinguish third-party claims.

Purchasing, Office buildings

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