Is Deed In Lieu synonomous with Debt Forgiveness? If not, how do they differ?

Deed in Lieu is not debt forgiveness to the best of my knowledge. I have seen a couple of clients go deed in lieu and everytime the bank does not release them completely from the lien they end up paying the spread ( the difference between what they owe and what the lender sells the property for). If the lender offers the deed in lieu and does a complete release this may not be a bad way to go for some. As far as credit is concerned, I have heard of a deed in lieu being referred to as a "mini foreclosure'.

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