Deed In Lieu
A deed-in-lieu of foreclosure is where you deed your house back to the Bank, and the Bank agrees not to foreclose on the property. However, if there is more than just one Mortgage on the property, a deed-in-lieu may not be accepted by your Bank. However, there are potential dangers here, as the Bank may still be able to sue you for money after a deed-in-lieu.
Often, I am asked to oversee this process for my clients, so that once they deed the property to the bank, the bank provides a waiver of deficiency. This ensures that the bank will not be able to come back and sue my clients for anything at all.