Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
A deed in lieu of foreclosure is a choice of the home owner or mortgagor, mostly as a system of bypassing foreclosure. This step is usually a last option, whenever there are no other options for property owners, including modifications of loans or short sales. There are several advantages for both these parties, since expensive and lengthy foreclosure processes may be avoided as well. The deed in lieu of foreclosure has a specific system. Here, the mortgagor gives the deed of the security/collateral (real estate/property) back to the lender giving the mortgage. This is done in exchange for releasing all mortgage obligations, without going through the foreclosure proceedings. Both sides should have an agreement of good faith and voluntarily undertake these legal proceedings as well.
These deeds are often observed in the real estate sector. They are agreed to by home owners or borrowers, who cannot utilize any other option for handling the mortgage and are forced into foreclosure. To avoid this foreclosure, they often get into such agreements, where they make a fresh start, avoiding any legal implications of the property and completely and legally hand over the property title to the lender.
