Sometimes a lender should not accept the act. For example, the lender should only accept a partial transfer of the property if all of the mortgage debt is discharged as a result of the partial transfer. Otherwise, the lender may face valuation and allocation problems, title issues and/or problems related to the subsequent forced execution of the property still subject to the mortgage, with all the necessary additional costs and delays. A lender should also hesitate before accepting a licensing body if there are subordinate pawn rights or subsequent judgments against the property. In such a situation, the lender must close its mortgage, with the costs and time associated with it to obtain a clear title. Even if the debtor promises to eliminate subordinate pawn fees and charges before the transfer of the property, he may not be able to do so, especially when many pledge rights or judgments are pending. Such issues are often outside the lender`s control and ownership issues need to be resolved quickly in order to quickly terminate the transaction. In this situation, the lender must also ensure that the facts are structured in a way that does not have the effect of merging mortgage law with the property after the transaction is concluded, thereby preventing the lender from defying subordinated pawn rights. See z.B., Downstate Nat Bank v Elmore, 224 Ill App 3d 1075, 587 NE2d 90, 167 Ill Dec 208 (5 D 1992) (where the mortgage makes a decision in place of enforcement, then carries the title by special warranty decision with the words “Grant, Bargain and sell” to the third party address. See also Felbinger and Co v Traiforos, 76 Ill App 3d 725, 394 NE2d 1283, 31 Ill Dec 906 (1st D 1979). An act rather than enforcement can be of great use to both a lender and a borrower, thus avoiding both the time and cost of enforcement.
However, the lender must be careful and sufficiently considered to ensure that the transaction is sanitized against any request for coercion, fraud or unacceptable benefit. The lender must ensure that accepting an act in the current situation is a good choice. To do so, the lender must assess all junior rights or charges on the property, the terms of the offer, shares in the property or any other circumstance that may render unprofitable the immediate reposseding of the property and the withholding of a possible default judgment. The lender should be assured that the deed will be carefully crafted to avoid a merger of mortgage law with the property. Finally, the lender should receive certification from the borrower that the borrower is not currently in default and is not provided as a result of the transaction. The borrower must ensure that all necessary documents are executed in full and that all considerations are paid to be released from personal liability for the mortgage debt. If all of the above requirements can be met, completing a transaction instead of a deed can be a good choice for both the lender and the borrower. An act instead of enforced execution is a document that transfers the property owner`s title to his lender in exchange for mortgage debt relief.