Deed In Lieu Of Foreclosure

In many legal disputes, it’s common for both parties who litigate to wind up paying the bulk of settlement money to the attorneys, so that the lawyers are the only ones to make a profit. This is why reasonable people will often eschew the lawyers for an out of court settlement. This happens in business and in divorces all the time.

A Deed In Lieu of Foreclosure is the real estate version of an out of court settlement. When the foreclosure process is inevitable, the owner can surrender the property deed to the creditor institution if willing to forgive the entirety of the debt remainder and, upon mutual agreement, simply consider the matter closed. This avoids protracted legal fees and the embarrassing and adversarial eviction process, which all goes into public record.