What is a Deed-In-Lieu? For persons facing foreclosure of their property, a Deed-In-Lieu of foreclosure is a disposition option in which a mortgagor (property owner) voluntarily deeds collateral property (homeowners house for instance) in exchange for a release from ALL obligations under the mortgage.
For more information, click here for Frequently Asked Questions (FAQ) on the U.S. Department of Housing and Urban Development (HUD) website.
