Happiness is a warm deed...

Thanks for discussing further the reasons the D-I-L are a precarious and seldom used method for lenders.

From a practical standpoint, the better practice is for a lender to receive the property title into another entity, in order to avoid merger of interests and to preserve their ability to complete a foreclosure, judicial or otherwise, in the future. This practise gives the lender the ability to perfect title as of the condition that existed when they made their secured loan and allows the lender to wipe OFF any junior lienors, if required.

I have used this very technique to complete perfection of title with a vrey high-profile attorney who would otherwise not want to show his cards to the public. The ensuing "friendly foreclosure" allowed me to wipe OFF some 22 junior liens. Oh, happy day!

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