Deed in Lieu
Deed in Lieu, what the heck is a deed in lieu? Well there's actually lots of terms, so, we're going to be probably seeing more foreclosures hit the market not super fast, but probably in the next five years, and there's different things you can do with foreclosures, one would be deed in lieu. So basically what that is is you tell the bank "Hey, listen. Here's the keys to my house, here's the deed, please don't foreclose on me." It's an option, it wrecks your credit pretty bad, but it is an option so you don't have to go through the pain of the foreclosure process. Another option would be to short-sell your house. Which means that if the market turns- which right now this isn't happening to anybody. But if the market were to turn, then you could actually sell your house for less than what you owe on it, and that's called a short sale. So we're selling the house shorter than what we owe and the bank takes the loss and you get off the hook. Again, it wrecks your credit and then there's the big F. Foreclosure.