Voluntary transfer
Deed-in-lieu of foreclosure
A deed-in-lieu transfers ownership to the mortgage holder by agreement. It can be simpler than foreclosure in some cases, but liens, occupancy, deficiency terms, and written releases matter.
Do not sign until these are clear
- Whether the agreement releases the remaining mortgage debt.
- How other liens affect eligibility or survive the transfer.
- The move-out date, property condition, and any relocation assistance.
- How the transaction may be reported and taxed.
Compare with a sale
- A regular sale may preserve equity if the numbers work.
- A short sale may allow a market sale when the payoff is higher than likely proceeds.
- A local attorney or housing counselor can help compare the written terms.