I found an interesting quote in the 2012 State of the Industry Report put out by October Research and The Title Report.
“You could see title agents become debt negotiation firms,” Miller said. “They can actually delegate authority at certain levels to do resolutions to get deed in lieu transactions consummated on behalf of lenders or servicers. They’re actually allowed to go to certain levels to pay off seconds and all sorts of things.”
Interesting! Title companies and their agents could help consumate a deed in lieu transaction. The article goes on to point out other niches title companies could go after to help us get out of the distressed property and foreclosure mess.
What's your opinion? Is this part of the mandate of a title company, or just a novel idea?
Whatevever your opinion on the topic, DataQuick can help you identify properties in any form of distress - bank owned, recent short-sale, notice of default, notice of sale at auction (NOT). And, soon, DataQuick property research products will provide insight into lis pendens and deed in lieu of trust.
Please post your opinions, and thanks for reading our blog!
Hi Thomas,
I am not familiar with “deed in lieu of trust”. What does this represent?
Thx!
Basically deed in lieu of trust means that an owner of a property voluntarily gives the property back to a lending party. In some cases a lending party may be an individual.
To state it more technically, a deed in lieu of foreclosure is a deed instrument in which a mortgagor (i.e. the borrower) conveys all interest in a real property to the mortgagee (i.e. the lender) to satisfy a loan that is in default and avoid foreclosure proceedings.
The deed in lieu of foreclosure offers several advantages to both the borrower and the lender. The principal advantage to the borrower is that it immediately releases him/her from most or all of the personal indebtedness associated with the defaulted loan.
Would this still leave the property owner if he is under water, subject to getting a 1099 from the lender?
I’m not sure about that Richard, but I did find a website that provides a commentary on deed in lieu transactions that may have the answer…
http://www.blankrome.com/index.cfm?contentID=37&itemID=2404
Can you tell me when we’ll be able to search properties with a lis pendens recorded in the same way we can search properties which have a notice of default recorded?
Right now you can see lis pendens information in the DataQuick PropertyFinder 2G Expanded History reports. So, if a property ever had a lis pendens recorded, you’ll find that in the history.
As far as search, that’s a great suggestion which we’ve heard from several of our clients. It’s on the enhancement list.