Most Default Mortgage Servicers consistently refuse to accept a deed in lieu of foreclosure from a defaulting homeowner unless there are no subordinate liens and unless they have obtained a financial statement from the homeowner to ensure he/she does not have adequate resources to repay the loan from their other assets.

While this may make sense in the Non-Judicial states, and even in some Judicial states with short foreclosure timelines, it has become nothing short of absurd in those Judicial states where there exists a substantial disparity between the time required to foreclose a mortgage secured by owner occupied residential property and the time required to foreclose a mortgage secured by non-owner occupied residential property. In order to fully understand the absurdity of this reasoning, it is important to first review the foreclosure process and the current timeline required to complete it.

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