[budlightdonkey]

Can someone tell me about deed-in-lleu of foreclosure?

[D L]

I believe a deed in lieu of foreclosure is basically the same as handing the house keys back to the bank and walking away. You forfeit any and all ownership/equity in the property and return it to the lender, who will then auction it to pay your loan. Having a foreclosure on your credit is a huge 'black eye'.

[877YouKeep]

Yes, you hand over the keys but there are some stipulations. If you have any liens or judgments the lenders will not take the property as a Deed in Lieu (DIL). They will still have to foreclosure to erase any junior liens to clear the title. In some instance you can negotiate a little money if you do a Deed in Lieu. In states where there is a a redemption period a mortgage company will go out of their way for a DIL to get the property back faster.