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<p class="MsoNormal">Ok, so this one can get you pretty far out in the weeds if you think about too long, as I have been, so I am hoping for some insight.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Situation: Bank sues debtor and gets a judgment for balance owed etc. and that includes the order to judicially foreclose.<o:p></o:p></p>
<p class="MsoNormal" style="margin-left:1.0in">Bank wants to do a deed-in-lieu, presumably to avoid the 8 month redemption period, delays in getting to sale and getting the deed from the Sheriff after redemption and so on. I have to assume the debtor is willing
to cooperate. Total guess but it seems likely it is a cash for keys or we won’t destroy your credit sort of thing (again just guessing).<o:p></o:p></p>
<p class="MsoNormal"> Title says, to them, the judgment already extinguished the DOT and other items on record below it. I mean the title right now is squeaky clean (except for the judgment).<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Questions: 1). If a traditional deed-in-lieu of foreclosure is done and the judgment ‘vacated’, wouldn’t that mean that any junior lien holder essentially ‘re-appears’ on title?<o:p></o:p></p>
<p class="MsoNormal"> 2). Can you exchange a deed from the debtor in ‘satisfaction’ of the judgment instead and avoid the undesirable result of #1? Again, remember that the debtor is willing to do this.<o:p></o:p></p>
<p class="MsoNormal"> 3). Is it even proper to do any sort of DIL when there is a Judgment – so an order from the Court – that says ‘after foreclosure
<i>and sale</i>’ or does the judgment need to be modified first?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Sincerely,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Richard L. Holland<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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