In my experience (from my days as a Broker and working with Lenders with REO's) I have noticed that not a lot of lenders want to take a property back on a deed in lieu due to litigations that have occured before. If the homeowner already signed the Deed in Lieu and sent it back you may be out of luck. Find out in what stage is at. I agree with everyone else, get a short sale listing and then sell to the buyer. Good luck.
I work for a direct lender headquartered in Irvine, California. Feel free to look me up at the following websites.
Thank you for looking. I look forward to hearing from you.
Eddie W. de Leon