Homeowners in Palm Beach Accept Foreclosure Agreement

American legislation provides for the possibility that a mortgage debtor or borrower can voluntarily transfer ownership of the property to the mortgage lender on which an agreement has been reached and on which a foreclosure process is being initiated due to default on mortgage payments.

This figure, of a deed instead of a foreclosure, has been created mainly for two purposes. On one hand, to prevent the borrower from suffering the consequences that can arise from having to face an entire foreclosure process, such as a poor credit rating. On the other hand, the lender can recover their investment more quickly and will not have to absorb the costs generated by having to face the normal development of a foreclosure process.

However, this agreement may not always be beneficial for the parties involved. On one hand, the borrower may incur losses by transferring the property if the current market price exceeds the amount owed. As for the lender, by opting for a deed instead of a foreclosure, they will have to assume any other possible liens or issues that the property may have.

One of these agreements has been reached by Silverstone. This company has decided to transfer a large senior living property located in Palm Beach County to Walton Street Capital, its current lender.

The two-story property with 136 apartments was transferred by Silverstone, as confirmed by city records, to settle a debt that amounted to 24 million dollars at the time.

Among the factors that led this company to sign a deed instead of a foreclosure were the high costs of insurance and the high interest rates currently affecting the country and the state of Florida, in particular.

Available foreclosures:

Palm Beach County: 150 houses available.

By Elías DaSilva | 30 de octubre de 2024.