When your Michigan business is up against foreclosure, you may not know what to do next. You have already resigned to the fact that you will lose the building, but that does not necessarily mean that you have to foreclose. This is where a deed in lieu of foreclosure comes into play. This will allow a person to surrender the deed to the lender in exchange for mortgage debt relief. While you may wonder why this is any better than a foreclosure, the truth is that it comes with its own benefits comparably.
A deed in lieu of foreclosure, according to Investopedia, is a way to avoid a foreclosure. Foreclosing on a property is a long, complicated process. They are long proceedings that tend to cost a lot of money for both parties involved. If you have a public or popular business, then your foreclosure is going to get some attention. Most business owners do not want this type of attention. It leaves a mark on your reputation publicly. In a foreclosure, you run the risk of forcible removal from the building.
In a deed in lieu of foreclosure, you come to an agreement about when you have to vacate the property. This gives you the time to relocate your business elsewhere. This option attracts business owners because provides you with a way to sit down with the property owner and have a discussion and make negotiations. It is far more amicable than a foreclosure.
The above information is not legal advice. Instead, it is to inform on what a deed in lieu of foreclosure is.