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Junior Lienholders Beware of the Deed in Lieu

July 14, 2014

By: Michael A. Friedrichs A grant deed in lieu of foreclosure (“deed in lieu”) given by a beneficiary to a foreclosing lender does not merge with the foreclosing lender’s deed of trust.  For creditors with junior liens secured by real property, including contractors who file a mechanic’s lien claim that is recorded after a deed of trust, a recent court ruling on this issue confirms an often misunderstood area of the law. In the case, decided […]

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