What legal right does a borrower relinquish when they sign a deed in lieu of foreclosure?

When a borrower signs a deed in lieu of foreclosure, they are voluntarily transferring ownership of the property to the lender, which means they are giving up their right to reclaim the property later. This legal right is significant because the deed in lieu of foreclosure is often a last resort for a borrower facing foreclosure; by choosing this option, they avoid the lengthy and more damaging process of foreclosure but at the cost of their ownership rights. Essentially, once the deed is executed, the borrower cannot move back into the property or claim it again, thus relinquishing the right to reclaim ownership. This action allows the lender to take back the property without the formalities of a foreclosure proceeding, streamlining the process for both parties involved.