One of the ways that you can work with your lender to avoid foreclosure on a home is to get a deed in lieu of foreclosure. This is a rather interesting option, and many lenders will not agree to it. But in some cases, it can be worth a try.

Deed in lieu of foreclosure

Instead of waiting for foreclosure options, you talk to your lender about exchanging the deed of your home for the cancellation of the mortgage against it. This can be difficult, since you won’t own your home any more. Plus, the lender usually requires that you try to sell your home for 90 days before.

But being in foreclosure for months can be damaging to your credit score. If you start early enough, you can be out of it before your mortgage resets.