Deed in lieu of foreclosure
A deed in lieu of foreclosure is when the homeowner gives a property back to the lender.
This occurs when the homeowner cannot afford the mortgage anymore, and cannot make payments to become current on the mortgage.
The lender then sells the property for whatever it can get.
The homeowner walks away from the debt problem despite the lender loss.
The lender doesn't have to go through a foreclosure process.
As you might imagine, many lenders prefer a short sale because then the house is
sold and taking back the home does not become the lender's probelm.