Whether a friendly foreclosure or a deed-in-lieu, borrowers are usually mindful of the fact that the way they handle the process will likely come up in the future.
“Part of the origination process on a new loan is the lender asking, ‘Have you ever given the keys back on a prior loan?;” said Richard Fischel of Brighton Capital Advisors. “The smart people will disclose this, because ultimately the lender is going to find out and you’re going to have a lot to explain why you didn’t disclose it.”
