The lender must agree, and many servicers want a sale tried first. Alex, a broker, can list the home.
How a deed in lieu usually works
- Apply to your servicer.Send its loss-mitigation application. A HUD-approved housing counselor can help at little or no cost.
- The servicer reviews your options.Federal rules don’t require a servicer to offer one. Many, FHA loans especially, look for a short-sale attempt first.
- Clear the title and hand over the keys.The lender usually needs clear title, so a second mortgage, HOA lien, or judgment generally must be released. Programs typically require the home vacant and broom-clean.
Get the terms in writing
A deed in lieu doesn’t automatically erase what’s left on the loan. Some programs release it and some don’t.
Florida law sets a one-year deadline for a lender to sue for a remaining balance on a one-to-four-unit home, starting the day after it accepts a deed in lieu.
Alex isn’t an attorney or CPA. Have a Florida attorney review the agreement before you sign.
Look for these in the agreement
- A written waiver of any deficiency (the remaining balance).
- Relocation help, which Fannie Mae, Freddie Mac, and FHA programs may pay if you qualify.
- The move-out date and required condition.
Deed in lieu vs. short sale in Florida
In a short sale, you sell to a buyer with the lender’s approval. In a deed in lieu, the lender takes the home.
A short sale can pay a second mortgage or HOA balance from the sale. A deed in lieu generally needs them released first.
Alex is a broker, not an attorney or loss-mitigation company. He doesn’t negotiate deeds in lieu. He lists the home and handles the short-sale approval if a buyer comes in.
Alex Silva, broker
Voyance Real Estate is led by its broker and owner, Alex D. Silva, who has more than 30 years in real estate and holds Florida broker license BK3153327.
Short-sale negotiation is his specialty: lender approvals, second liens, and valuation disputes.
He works with homes, condos, rentals, and commercial property across Central and South Florida, in English, Spanish, and Portuguese.
Deed in lieu questions
Do I still owe money after a deed in lieu in Florida?
You might, unless the agreement waives it. Get any waiver in writing and have a Florida attorney review it.
Will I owe taxes on the forgiven debt?
Possibly. Forgiven debt can count as income, and the lender may send a Form 1099-C. The federal main-home exclusion generally doesn’t cover debt forgiven after 2025 unless a written agreement was in place before 2026. Ask a CPA about other exclusions.
Can I buy a home again after a deed in lieu?
It’s possible, after a waiting period. For a Fannie Mae loan, it’s generally four years after a deed in lieu, versus seven after a foreclosure. Other loan types differ.
Official sources: CFPB on deeds in lieu · FHA loss mitigation · IRS Pub. 4681 · HUD-approved counselors
General real estate information, not legal, tax, or financial advice.
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Considering a deed in lieu? See what a sale would look like.
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