I hold the mortgage on a property, and the borrower defaulted. I want to foreclose, but rather than have the property sold at auction, I would rather have the property back. Is there a way to do this?
You could approach the mortgagee and request that the do a deed in lieu of foreclosure.
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Foreclosure is how to get the property back, unless the borrower is willing to give you a deed in lieu of foreclosure voluntarily. Otherwise, you can foreclose and sell the property at auction, but you can bid the amount of your mortgage balance in the auction, so you have a better chance of getting it than others, unless it is worth far more than the mortgage balance. In any event, you can either get the property back or your mortgage paid off, which is all that you are entitled to anyway, plus possibly a deficiency judgment against the borrower if the property is worth less than the mortgage balance.
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