Deed-in-Lieu – A process whereby a property owner returns ownership and possession of a property to the lender instead of going through foreclosure proceedings. This process avoids foreclosure. Recently, many developers who have fallen delinquent on large commercial loans have gone with a deed-in-lieu to prevent the bank from taking the time and money to foreclose in exchange for being released from a personal guarantee.
- Example: In recent years, many homeowners and development owners have avoided the foreclosure process with their lenders by opting for a deed-in-lieu.
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