A deed in lieu of foreclosure is “one of the oldest concepts in real estate”, though it has recently surged back into the limelight given the current climate fostered by the abundance of short sales and foreclosures in our market. Banks have a very clear incentive to find a resolution to their borrowers’ default, as it all boils down to speed. Deeds in lieu allow banks to quickly gain ownership of their borrowers’ properties and in turn are able to resell the property. This type of alternative may not be appropriate for those cases involving serious mortgage default, for instance if you have a substantial amount of equity built up in your home, you may wish to seek a loan modification and then go down the route of a short sale before simply handing over all your hard earned equity to your lender!