A deed in lieu of foreclosure, also referred to as voluntary conveyance is; A legal proceeding in which the mortgagee takes possession of and sells a mortgaged property when the mortgagor does not meet his or her contractual obligations An alternative to the foreclosure under which the mortgagor deeds the collateral property back to the mortgagee in exchange for the release of all obligations under the mortgage A sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan A legal proceeding involving a person or business that is unable to repay outstanding debts