What Happens After a Deed in Lieu of Foreclosure?
After the borrower surrenders ownership of the property by way of a deed in lieu of foreclosure, the mortgage lender may then attempt to sell the property in order to recover part or the entire amount initially borrowed. A deed in lieu of foreclosure is a legal process wherein the borrower and lender sign particular documents in order to transfer ownership of the property from borrower to lender, and cancel the debt. The lender will waive any right to seek unpaid debt if unable to recover the full amount owed through the sale of the property, and the borrower will be released from all liability to pay the mortgage.
