Q:

What is the deed in lieu of foreclosure process?

A:

Quick Answer

The deed in lieu of foreclosure process differs by lenders, but overall the process includes the owner of a property giving up all legal rights to the property. The owner turns the property over to the lender.

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Full Answer

Once the owner has turned over the deed, the mortgage disappears and there is no foreclosure on the home. This is helpful to the owner because less harm is done to his credit. This usually happens when an owner has fallen behind on mortgage payments. The owner must then negotiate a deal with the lender where the lender can receive the house in good condition while also signing over all rights to the lender.

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