Deed-In-Lieu of Foreclosure
FreddieMac
Updated 10-31-2026
Deed-In-Lieu of Foreclosure
A deed-in-lieu of foreclosure is a cancellation of your mortgage if you voluntarily transfer title of your property to your mortgage company. Usually you must try to sell your home for its fair market value for at least 90 days before a mortgage company will consider this option. A deed-in-lieu of foreclosure may not be an option if there are other liens on the property, such as second mortgages, judgments from creditors, or tax liens.
FreddieMac Glossary
FreddieMac · p. 6
FTC
Updated 10-31-2026
Deed-In-Lieu of Foreclosure
The transfer of title from a borrower to the lender to satisfy the mortgage debt and avoid foreclosure. Also called a "volun-tary conveyance."
FTC Real Estate Terms
FTC · p. 5
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