A deed in lieu of foreclosure—often referred to as a deed in lieu—is a deed by which a borrower (mortgagor) transfers fee simple title to a lender (mortgagee) to satisfy a mortgage debt.

A deed in lieu of foreclosure is a substitute for the foreclosure process and a delinquent debtor or mortgagor may avoid paying a deficiency balance (if the home is worth less than the amount owed) and may lessen the impact on their credit report by signing a deed in lieu.

In Nebraska, a deed in lieu of foreclosure is a legal instrument where a homeowner voluntarily transfers the ownership of their property to the lender to satisfy the outstanding mortgage debt and avoid the foreclosure process. This arrangement can be beneficial for both parties as it allows the borrower to avoid the negative consequences of a foreclosure on their credit history, and it can expedite the process for the lender compared to a traditional foreclosure. Nebraska law does not have specific statutes that detail the process for a deed in lieu of foreclosure, so the terms are typically governed by the mortgage contract and negotiated between the lender and borrower. It's important for the borrower to ensure that the agreement includes a release from any further obligation, particularly if the property's value is less than the debt owed, to avoid being responsible for a deficiency balance. An attorney can help navigate the complexities of this transaction, ensuring that the rights and interests of the borrower are adequately protected.