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To deed, or not to deed: The pros and cons of a deed in lieu

Amid soaring interest rates and the recent swell in commercial real estate loan workouts, borrowers and lenders alike are increasingly considering an alternative to the traditional and sometimes long and cumbersome foreclosure process: a deed in lieu of foreclosure (often referred to as just a deed in lieu). A deed in lieu is a voluntary conveyance by the borrower to the lender, often in exchange for releasing the borrower and guarantor from all or some of their liability under the loan. Before engaging in a deed-in-lieu transaction, borrowers and lenders should consider the costs and benefits relative to a traditional foreclosure.

Read more from attorneys Alexander Berger, Trevor Hoffmann, and Rajinder Saini in this Boston Business Journal article.

For these reasons, lenders and borrowers should consider a deed in lieu as an alternative to foreclosure or an immediate short sale that could benefit both parties and preserve value depending on the circumstances of a particular troubled property.


real estate, article, commercial real estate workouts