If you've exhausted all of your other options to avoid foreclosure to no avail, you should consider a deed-in-lieu. This option involves voluntarily handing over your home to your lender [source: Hobson]. While this option does not seem as inviting, it still may be better than going through the foreclosure process. Not only will it save your credit score from the damages of foreclosure, you may receive relocation expenses if you leave your home in impeccable condition. Before you turn your deed over to the bank, make sure you understand the entire process. You should only consider this option if you're completely upside down on your mortgage and could never recover any of the equity you have in it through a sale [source: Hobson]. You may also want to consult a tax adviser as well, since forgiven debt may affect the taxes you owe at the end of the year.