why short sale/deed in lieu buyer gets trustee's deed


#1

why short sale/deed in lieu buyer gets “trustee’s deed upon sale” not “grant deed”?


#2

Alexy,?

Glad to be corrected if I’m wrong … but it’s my understanding that the trustee’s deed upon sale (TDUS) applies to ‘trustee sales’ (foreclosure) and would not be issued in the case of a short sale or deed in lieu as you suggested by your question.?

When you dissect the name (TDUS) it suggests the trustee (who acts on behalf of the lender) is the party who issues the deed. And that certainly applies to foreclosures wherein the former property owner is not a direct participant in the transaction … the ex-property owner did not grant anything (hence no grant deed) other than his/her consent to abide by terms of the mortgage/loan (via signature on original loan docs), the ex-property owner simply allowed, or were unable to prevent, the trustee from ‘acting’ (selling the loan at a trustee sale) on behalf of the lender.


#3

? ?There probably is a logical answer for this. ? If you are a member of FR, you could probably figure it out by looking at the info that is provided, here.

? Eg. ?The SS fell thru at the last minute because the junior lender(s) wouldn’t cooperate and it went to fcl sale. ?

We had a client who just bought a property where a buyer was about to take title via SS. ?The lender, for whatever reason, proceeded to fcl., our client got the TDUS and sold it to the person who was trying to buy it via SS.