A Deed in Lieu of Foreclosure is when the owner of a property signs the title of the property over to the lender so that the lender is not required to foreclose on their security interest (their Deed of Trust) to obtain title to the property. The borrower or the borrower’s heir who has the authority to grant title can Deed the title to the lender if they do not wish to keep the home and have no desire to try to sell the home.