Definition
A voluntary transfer of property to the lender to satisfy a defaulted loan and avoid foreclosure proceedings.
Example
The borrower negotiated a deed in lieu, avoiding the longer foreclosure timeline and some credit damage.
Related terms
- Abstract of Title
- Adverse Possession
- Affidavit of Title
- Certificate of Occupancy
- Chain of Title
- Cloud on Title
Frequently asked questions
What does Deed in Lieu of Foreclosure mean in real estate?
A voluntary transfer of property to the lender to satisfy a defaulted loan and avoid foreclosure proceedings.
How is Deed in Lieu of Foreclosure used in practice?
The borrower negotiated a deed in lieu, avoiding the longer foreclosure timeline and some credit damage.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.