A deed in lieu of foreclosure is often referred to as a "friendly foreclosure" because:

A deed in lieu of foreclosure is a voluntary conveyance of property title from a borrower to the lender to satisfy a mortgage debt and avoid the formal foreclosure process. It is commonly called a "friendly foreclosure" because, unlike a contentious and adversarial foreclosure lawsuit, this process is entirely consensual. It requires the full cooperation and mutual agreement of both the borrower, who offers the deed, and the lender, who must agree to accept it. This non-adversarial, negotiated settlement is the basis for the "friendly" designation.

A. This alternative is available based on the lender's policies and the borrower's financial situation, not on personal relationships with the lender.

C. "Friends of the court" (amici curiae) are impartial advisors in a lawsuit and are not the legal representatives who handle this type of transaction.

D. A deed in lieu of foreclosure is a mechanism to avoid a foreclosure sale entirely; therefore, there is no sale or third-party buyer.

1. Code of Virginia, § 55.1-320. How deed of trust construed; duties, rights, etc., of parties. While the statute does not use the term "friendly foreclosure," it outlines the formal, non-judicial foreclosure process. A deed in lieu is a contractual alternative to this statutory process, predicated on the voluntary agreement of the parties to transfer the deed, as governed by general principles of property conveyance.

2. Ling, D. C., & Archer, W. R. (2018). Real Estate Principles: A Value Approach (6th ed.). McGraw-Hill Education. In Chapter 11, "Mortgage Default and Foreclosure," the text describes a deed in lieu of foreclosure as a consensual and cooperative process. It states, "The lender may allow the borrower to simply convey the property to the mortgagee... This is known as a deed in lieu of foreclosure... It is important that the conveyance is voluntary..." (p. 315).

3. Virginia Real Estate Board. (2023). Virginia Real Estate Pre-Licensing Education Curriculum: Principles and Practices of Real Estate. Module 10: Real Estate Financing. The state-sanctioned curriculum explains that a deed in lieu is a voluntary act on the part of both the mortgagor and mortgagee, where the lender accepts the deed instead of pursuing a formal foreclosure action.