| Re: Deed in lieu - unsolicited
Construction loans in particular, because of the potential for mechanics' liens, are an interesting beast when it comes to getting lenders to accept a deed-in-lieu.
The good news is if they foreclose they will undoubtedly follow the non-judicial foreclosure route. Once they have completed that foreclosure (it takes approximately 4 months), you will no longer be liable for any shortfall. So it may make sense to take the hit to your credit score and let them foreclose.
Take care,
Daniel |