Deeds In Lieu of Foreclosure
Homeowners have some options for ending the foreclosure process:
- Paying off the debt before the foreclosure sale begins (known as an equity of redemption);
- Refinancing the debt with another lender (poor credit records or the time needed to complete the transaction may make this impossible);
- Selling the property and paying off the debt; or
- Conveying the property back to the lender in exchange for cancelling the debt, known as a deed in lieu of foreclosure (DILF), and it requires the lender’s consent and cooperation.