A deed-in-lieu of foreclosure is a cancellation of your mortgage if you voluntarily transfer the title of your property to your mortgage company. Usually, you must try to sell your home for its fair market value for at least 90 days before a mortgage company will consider this option. A deed-in-lieu of foreclosure may not be an option if there are other liens on the property, such as second mortgages, judgments from creditors, or tax liens.