What precisely are deeds-in-lieu? The full name is deeds-in-lieu-of-foreclosure. They are voluntary transfers of property ownership from borrowers to creditors that make court-directed foreclosures unnecessary.

This is a good alternative for people who have tried to do loan modifications and, in frustration, have given up.

Upside of doing a Deed-in-lieu:

  • Possible cash incentives that sometimes range into five figures
  • They won’t come after you to collect any deficiency between what you owe them on the mortgage and what they obtain from the home sale
  • They may be able to wrap up the whole transaction in as little as 30 to 45 days

Read more: Deeds-in-lieu: An alternative to foreclosure – latimes.com.