This is also known as a “friendly foreclosure,” a deed-in-lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process. A lender approval is required for this option, and the homeowner must also vacate the property.
Deed-in-lieu can potentially lessen the damage to a credit score and future loan eligibility, and sometimes the lender will forgo their right to pursue a deficiency judgment, meaning the homeowner will not be responsible for further payments.
Deeds-in-lieu of foreclosure is a deed instrument in which a mortgagor (the borrower) conveys all interest in a real property to the mortgagee (the lender) to satisfy a loan that is in default and avoid the foreclosure process. See Entire Article Here
I'm local REALTOR® Steve Cantrell. I write a website called "Real Estate Property Information". This is a very informative site to get reference on real estate.
