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Laws Prohibiting Bank From Not Taking Ownership?

Question: 
Our bank is in PA-the property is located in OH.We wish to foreclose on the loan, issue the 1099C, but not take ownership of the property (deed in lieu). We are willing to charge off the loss rather than spend the money to rehab & market the property. Are there any laws prohibiting us from not taking ownership?
Answer: 

I do not understand how the bank plans to take the deed, which means the borrower is signing the property over to the bank, but not take ownership of the property.

If the bank wishes to charge off and not foreclose or pursue further collection action, then it simply charges the loan off. There would be no need for taking the deed in lieu.

First published on 02/24/2014

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