Michael Petruccelli says; Short for "deed in lieu of foreclosure," this
conveys title to the lender when the borrower is in default and wants to avoid foreclosure. The lender may or may not
cease foreclosure activities if a borrower asks to provide a deed-in-lieu.
Regardless of whether the lender accepts the deed-in-lieu, the avoidance and
non-repayment of debt will most likely show on a credit history. What a
deed-in-lieu may prevent is having the documents preparatory to a foreclosure
being recorded and become a matter of public record.
