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The other day I had a buyer question from an individual I was working with in search for their new home. The question was ..... what does a deed in lieu mean. The correct terminology is deed in lieu of foreclosure. This refers to a mutual agreement under which the current owners who typically are delinquent in their mortgage payments deed the property back to the lender in return for various considerations. These considerations are usually a release from the liability under the loan terms. 
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