What is a deed in lieu agreement?

A deed in lieu agreement is an arrangement that gives your mortgage lender the deed to your home. Homeowners agree to deed in lieu agreements to avoid foreclosure. Foreclosures show up on your credit report. This can make it virtually impossible for you to buy another home for years.

What is a deed in lieu of foreclosure?

The term deed in lieu is a short phrase commonly used to refer to a deed in lieu of foreclosure, which is a tool that may be used by some homeowners who are seriously behind in their mortgage payments, and seeking a way out. Foreclosure is a costly endeavor for both the homeowner and the financial institution holding the mortgage.

What are the benefits of a deed in lieu of foreclosure?

There are benefits for both parties, including the opportunity to avoid time-consuming and costly foreclosure proceedings. A deed in lieu of foreclosure is a potential option taken by a mortgagor, or homeowner, usually as a means of avoiding foreclosure .