A Deed in Lieu is merely the turning over the deed of your house back to the bank.
A better choice for you credit wise would be to put the property on the market as a "short sale." It is a little less detrimental.
Give us a call if we can be of service to you.
But depending on why you are asking this question, it is a question for an Attorney.
Kathryn Lilly, Broker
Realty on the Greene, LLC
If you would like additional information or assistance contact me anytime @ 914-299-0420.
Please speak with your bank's modification or liquidation department to discuss your options.