Deed in lieu of foreclosure

Sometimes people have a hard time paying for their house. When that happens, the bank that gave them money to buy the house might want to take it away from them so they can sell it and get their money back. This is called foreclosure.

But sometimes the bank and the person who bought the house can agree on something called a deed in lieu of foreclosure. When this happens, the person who owns the house says, "I know I can't pay for this house anymore, so I'll give you back the deed." The deed is a piece of paper that says who owns the house.

By giving the deed back, the bank can take the house and sell it to get their money back, but nobody has to go through all the trouble and expense of a foreclosure. This can be helpful because foreclosures can be a long process, and they can be tough on everyone involved, especially the people who used to live in the house.

So, a deed in lieu of foreclosure is when the person who can't pay for the house gives the deed back to the bank so they can sell it, and everyone saves time and trouble.