deed in lieu of foreclosure
A means of escaping an overly burdensome mortgage. If a homeowner can't make the mortgage payments and can't find a buyer for the house, many lenders will accept ownership of the property in place of the money owed on the mortgage. Even if the lender won't agree to accept the property, the homeowner can prepare a quitclaim deed that unilaterally transfers the homeowner's property rights to the lender.
Category: Bankruptcy, Foreclosure & Debt → Foreclosure
Category: Real Estate & Rental Property → Homeowners

Nolo’s Plain-English Law Dictionary. . 2009.

deed in lieu of foreclosure
USA
deed-in-lieu, Also called a deed in lieu of foreclosure. It conveys title to a lender when a defaulting borrower wants to prevent foreclosure. A lender can choose whether to stop foreclosure activity when the borrower requests a deed-in-lieu. It can help prevent foreclosure preparation documents from being recorded and becoming a matter of public record.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • Deed in lieu of foreclosure — A Deed in lieu of foreclosure is a deed instrument in which a mortgagor (i.e. the borrower) conveys all interest in a real property to the mortgagee (i.e. the lender) to satisfy a loan that is in default and avoid foreclosure proceedings. The… …   Wikipedia

  • Deed In Lieu Of Foreclosure — A potential option taken by a mortgagor (a borrower) to avoid foreclosure under which the mortgagor deeds the collateral property (the home) back to the mortgagee (the lender) in exchange for the release of all obligations under the mortgage.… …   Investment dictionary

  • deed in lieu of foreclosure — A deed executed by the mortgagor that transfers ownership in real estate to a lien creditor. This instrument is used when the debtor is unable or unwilling to pay and wishes to avoid foreclosure. American Banker Glossary …   Financial and business terms

  • deed-in-lieu of foreclosure — A deed executed by the mortgagor that transfers ownership in real estate to a lien creditor. This instrument is used when the debtor is unable or unwilling to pay and wishes to avoid foreclosure. American Banker Glossary …   Financial and business terms

  • deed-in-lieu — USA deed in lieu, Also called a deed in lieu of foreclosure. It conveys title to a lender when a defaulting borrower wants to prevent foreclosure. A lender can choose whether to stop foreclosure activity when the borrower requests a deed in lieu …   Law dictionary

  • in lieu — in place of . Collins dictionary of law. W. J. Stewart. 2001. in lieu Instead of. For example, a deed in lieu of foreclosure is a deed to a house offered to the lender by th …   Law dictionary

  • Foreclosure consultant — means any person who makes any solicitation, representation, or offer to any owner to perform for compensation or who, for compensation, performs any service which the person in any manner represents will in any manner do any of the following:(1) …   Wikipedia

  • Foreclosure investment — refers to the process of investing capital in the public sale of a mortgaged property following foreclosure of the loan secured by that property. In real estate, foreclosure is the termination of the [equity] of redemption [Equity of redemption… …   Wikipedia

  • Foreclosure data provider — Foreclosure data providers provide investors, real estate agents and mortgage brokers with the foreclosure data they need in order to pursue foreclosed properties. A good provider will have a good local understanding and focus, and will acquire… …   Wikipedia

  • Foreclosure — For Lacan s psychoanalytic process, see Foreclosure (psychoanalysis). House in Salinas, California under foreclosure, following the popping of the U.S. real estate bubble. Foreclosure is the legal process by which a mortgage lender (mortgagee),… …   Wikipedia

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