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? about Deed in Lieu of Foreclosure?

General question- how does this work if you have a home equity loan as well as a mortgage?

yes, I have the original mortgage and a home equity loan on the same property.

When you have 2 different mortgages, you probably can not do a Deed in Lieu of Foreclosure, because each mortgage forbids you from transferring title during the terms of the loans, under penalty of mortgage principal acceleration. You are responsible for the payment of both mortgages and the promissory notes associated therewith.

If both mortgages are with the same lender and if foreclosure is imminent, you contact the appropriate department of the lender (probably the legal department), and ask them if they will take your Deed in Lieu of Foreclosure for a FULL release of BOTH mortgages AND cancellation of both promissory notes. That is, in exchange for your Deed for your property to the lender, the lender will decline foreclosure proceedings, and will give you 2 mortgage releases and 2 canceled notes (one for the primary mortgage loan and one for the equity mortgage loan). You should be represented by an attorney if you do this procedure.

You then have 2 mortgages on the same home. Both are on title.

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