[WSBARP] Deed in Lieu of Foreclosure - Removal of Grantor

[Joseph McIntosh]

If you have an problematic owner, or clouded title, a deed in lieu is a bad option.  The institutions typically, and for good reason, put a bunch of pre-conditions on a deed in lieu, like clear title, vacating property, inspection, no property damage, keys, etc. before they consummate the transaction.   They also get a title policy in advance.  And no, you are not always in the same position as a foreclosure purchaser, at least with respect to title.  The foreclosure sale purchaser acquires the ownership interest that was pledged in the security instrument.  The deed in lieu grantee acquires the present ownership interest, which could have junior encumbrances.

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Jeff at bellanddavispllc.com
Sent: Friday, August 4, 2023 11:50 AM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Deed in Lieu of Foreclosure - Removal of Grantor

Listmates:

I have done Deed in Lieu of Foreclosures for years.  I have no clue where those are authorized.  Also, what if the Grantor, of such deed, fails to get out.  Does the Grantee have the same rights as the purchaser at a deed of trust foreclosure sale?  Can you agree as part of the Deed in lieu, that if the Grantor does not vacate by a date certain, that the Grantee can treat the Grantor as a squatter, or trespasser and use a  three day notice to vacate under 59.12?

Jeff

W. Jeff Davis
BELL & DAVIS PLLC
Attorneys at Law
P.O. Box 510
720 E. Washington Street, Suite 105
Sequim WA 98382
Phone: (360) 683.1129
Fax: (360) 683.1258
email: jeff at bellanddavispllc.com<mailto:jeff at bellanddavispllc.com>
www.bellanddavispllc.com<http://www.bellanddavispllc.com/>

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