legal  loans


Question by  peace232 (76)

What information can you provide me on a deed in lue?

My bank mentioned that I consider a deed in lue and have no idea what it is.


Answer by  BillS (50)

You agree to turn ownership of your home over to the Bank for the amount you owe on your mortgage. It is a non-cash transaction.


Answer by  maber (1427)

This is when you sign the house back to the bank, giving them the deed, and you are able to walk away from the house with nothing on your credit. You will lose all money that you paid on the house but you will not have a forclosure on your record.


Answer by  DogLover82 (412)

Your banker was probably referring to a Deed in Lieu of Foreclosure. If it looks likes forclosure is a certainty, you can deed your property to the lender.


Answer by  Zoso (869)

They're probably talking about a "deed in lieu of foreclosure". "In lieu" means "instead of". They're offering to accept the deed, and all your interest in the property, to prevent going ahead with foreclosure proceedings. You have to decide whether your accumulated equity in the property is worth trading away, versus the real and intangible costs of foreclosure.

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