Deed in lieu

What is Deed in lieu?

To avoid foreclosure ("in lieu" of foreclosure), the owner gives a conveyance deed to the lender conveying all ownership in the property over to the lender. The owner vacates the premises and in return, the mortgagee does not foreclose on the property and does not go after the mortgagor for any deficiency amounts due.

Further Reading

For more detailed information, see our related Real Property terms:

• Concurrent Ownership
• Conveyance

Reviewed by

Stephanie Bagnall

Licensed Attorney and Legal Researcher

Stephanie Bagnall is a Georgia-licensed attorney and legal researcher with experience in accessibility law, compliance, employment law, and legal writing. She helps develop and review BarPrepHero's Legal Terms content for clarity, accuracy, and usefulness to bar exam students.

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