THE DEED-IN-LIEU OF FORECLOSURE

 The deed-in-Lieu of foreclosure is when you give up and deed your home back to the Bank. The Bank will always accept this; however; it's not a good option. The reason it's not a good option is because the Bank could come after you, the homeowner, for a deficiency judgment.  

Let's explain what a deficiency judgment is it's when the Bank takes back a house that has a mortgage balance of $200,000. The house is worth $200,000, and the Bank ultimately sells the house for $150,000. This $50,000 that the Bank does not receive from what was owed to what they sold it for is the deficiency (read more)