Posted on: 06th Oct, 2009 09:10 am
If you do a deed of transfer in lieu of foreclose on a commercial property in the state of Georgia, can the bank come back to you for any funds that they were not able to recoup when they sold the building at a later date?
I know that if they foreclose on the property and then sell it, I am liable for the difference. Is this the same case for a Deed of Transfer?
I know that if they foreclose on the property and then sell it, I am liable for the difference. Is this the same case for a Deed of Transfer?
it is known as deed in lieu.
AS a process you can do it, with an agreement with mortgage lender & then then can't ask you for deficient amount.
AS a process you can do it, with an agreement with mortgage lender & then then can't ask you for deficient amount.
Hi Jerome,
When you signed on the promissory note, you actually promised to pay off the debt in full. Thus, if the sale of the house does not satisfy the full amount of the loan, the lender has the right to come after you, no matter whether it is a foreclosure or a deed in lieu. However, in a deed in lieu since you deliberately sign over the property to the lender and spare them the cost and time involved in a typical foreclosure, it is likely that they will forgive the difference.
When you signed on the promissory note, you actually promised to pay off the debt in full. Thus, if the sale of the house does not satisfy the full amount of the loan, the lender has the right to come after you, no matter whether it is a foreclosure or a deed in lieu. However, in a deed in lieu since you deliberately sign over the property to the lender and spare them the cost and time involved in a typical foreclosure, it is likely that they will forgive the difference.