[Moe Bedard]

You can do this on your own but should consult with an attorney experienced in real estate law in your state for the best advice. If you want to do this on your own, it's basically a negotiation to unwind your mortgage contract and walk away.

To proceed with a deed in lieu both parties must agree to and sign both an Agreement in Lieu of Foreclosure, which outlines the terms of the deed, as well as the deed itself, which transfers legal ownership of the property.

If an agreement is reached, the lender then classifies the original loan as paid and issues a waiver to deficiency judgment, which would normally go into effect in case sale of the property results in an amount less than the debt.

A third party escrow service then executes the agreement, thus releasing both parties from their original contract.

And that's it. Getting it approved can be the heard part.......