From Yahoo Finance: 2025-05-09 14:15:00

Distressed borrowers are increasingly handing over the keys to their lenders, with one-third offering a deed-in-lieu of foreclosure, leaving banks with messy clean-up jobs. Banks try to avoid owning more buildings, despite the simplicity of deed-in-lieu agreements, as they face potential liabilities. Resolving issues like unpaid taxes and vendor payouts can be complex and time-consuming. Lenders need to be cautious about funding reserves to avoid future liability suits. The real estate conference in San Francisco highlighted market conditions and opportunities for buyers with patient money, emphasizing the importance of strong borrower-lender relationships during tough times.



Read more at Yahoo Finance: One in three distressed borrowers handing back buildings, experts say