What is Deed in lieu?
To avoid foreclosure ("in lieu" of foreclosure), the owner gives a conveyance deed to the lender conveying all ownership in the property over to the lender. The owner vacates the premises and in return, the mortgagee does not foreclose on the property and does not go after the mortgagor for any deficiency amounts due.
Further Reading
For more detailed information, see our related Real Property terms:
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