An Assignment for the Benefit
of Creditors, commonly called an ABC, is a cost saving
alternative to foreclosure. The assignment grants immediate
asset control to the assignee. Once an ABC is executed,
the Assignee steps into the shoes of the Assignor (debtor)
and is able to liquidate its assets and pay its creditors
Traditionally, a lender must endure the foreclosure
process and wait out the redemption period before it
is able to market and sell the property. If an ABC
is executed, however, the Assignee is able to list
the property for sale immediately. Also, a foreclosure
or a deed in lieu, may not be a viable option as the
lender does not want to take title to the property
due to environmental or other liability issues. An
ABC alleviates these concerns by allowing the Assignee
to take title rather than the lender.
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