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Define Deed in Lieu of Foreclosure in Real Estate

Deed in Lieu of Foreclosure: 

A "Deed in Lieu of Foreclosure" is when a person who can't pay their mortgage gives the ownership of their property back to the lender, like a bank, instead of having the lender take it through foreclosure. It's an agreement that helps both the borrower and the lender avoid a long and costly foreclosure process.

Example: 

John is having trouble paying his mortgage and knows he won't be able to catch up on the payments. Instead of waiting for the bank to foreclose on his home, he agrees to give the bank the ownership of his home through a Deed in Lieu of Foreclosure. This way, John avoids the foreclosure process, and the bank gets the property back without going to court.

"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"

A Deed in Lieu, oh what could it be?
A way to avoid foreclosure, you see.
When mortgage payments are tough, and times are quite dire,
This agreement can help, like a safety wire.

The borrower hands over the property key,
Back to the lender, as easy as can be.
No foreclosure, no court, a simpler affair,
A Deed in Lieu, a solution that's fair.