TeachMeFinance.com - explain deed in lieu of foreclosure
to avoid foreclosure ("in lieu" of foreclosure), a deed
is given to the lender to fulfill the obligation to repay the debt;
this process doesn't allow the borrower to remain in the house but
helps avoid the costs, time, and effort associated with foreclosure.
deed in lieu of foreclosure -- the transfer of title to real property from a delinquent mortgagor to the mortgagee, given to satisfy the obligation of repaying the balance due on the defaulted loan and thus preventing foreclosure.
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