I have had to relocate due to forced job transfer from FLorida to Atlanta, had property on market for 3 years unable to sell it. want to submit deed in lieu of forclosure to back. CXan I do that without having to wait through the process. Can I have the deed signed with notary returning it to the bank?
Country relating to Question: United States
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Good afternoon. You can do the deed, have it witnessed and notarized, and then give it to the bank. But, I would advise against it. Florida is a deficiency state, meaning that as borrower the bank can pursue you for any deficiency. Whether or not they will depends upon theirassessment of the collectibility of a deficiency judgment. So, if the borrowercan convince them there is nothing for them to get, and that if they were topursue a judgment, the borrower would simply file for bankruptcy protection andget the judgment discharged-and even if the borrower has no intention of doingso, it is still good leverage with the bank because they do not know whetherthe borrower will not do so--- then it is unlikely the lender will spend thetime and money necessary to get a judgment they believe is uncollectible in theend.
The reason you don't want to just give a bank a deed in lieu is that you want to get something from the bank in exchange for saving the bank the time and expense of Foreclosure. What you want from them is a release from the obligation for any deficiency. If you simply give them the deed, you don't get this and they can still pursue you. The language you want them to agree to is something very similar to the following:
"This deed is an absoluteconveyance for a fair and adequate consideration, being the full satisfactionof all obligations secured by the Deed of Trust executed by _______________________,trustor, in favor of _______________________________, Beneficiary, recorded on__________________ as Instrument No. _________________, Official Records of__________________ County, _____________, plus the additional payment of$______________. Grantor declares that this conveyance is freely and fairlymade, and that there are no agreements, oral or written, other than this deedbetween grantor and grantee with respect to the property conveyed by this deed.By accepting this deed, Grantee specifically intends that a Merger of titleshall not occur and that the deed of trust shall continue as a lien onthe property until it is reconveyed.
This statement is made for theprotection and benefit of the grantee, the grantee's successors and assigns,and all other parties hereafter dealing with or who may acquire an interest inthe property, and for the benefit of all Title Insurance companies that insuretitle to the property."
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