Deed in Lieu

A Deed in Lieu of foreclosure is when you basically just give the keys to the bank and sign the deed over to them. You usually have to have at least tried to sell the house for 90 days for most lenders to consider this as they do not want to take back your house. Some lenders also call this cash for keys as on occasion a lender will pay you a relocation fee, sometimes around $1500. A downfall with the Deed in Lieu is that it does not clear you of the debt. Lenders that take a Deed in Lieu have been known to sell the house, then sue the past owner for the shortage. You may be able to get out of that by filing a bankruptcy, but it just creates more work for you and a bankruptcy is something that you would like to avoid if possible.