Sometimes simply referred to as “Deed-In-Lieu”, “Deed-in-Lieu of Foreclosure” is an agreement between the lender and the borrower that allows for the transfer of the legal title of the borrower’s property to the lender…in consideration for the forgiveness of the mortgage debt.
Although it’s a way to avoid foreclosure, it’s not a given that the lender will want to do a “Deed In Lieu”. Ask them about it…if it makes sense for your particular situation. As always, check with your attorney, CPA, etc.