Final answer:
A deed in lieu of foreclosure involves a defaulting borrower surrendering the property title to the lender to avoid foreclosure. This property acts as collateral which the lender can sell if the loan isn't repaid. A cosigner is someone who agrees to repay the loan if the borrower defaults.
Step-by-step explanation:
The subject of the question is a financial arrangement known as a deed in lieu of foreclosure. This occurs when a defaulting borrower hands over the title of the property back to the lender in order to avoid the foreclosure process. In such a scenario, the property itself acts as collateral; it is something valuable that the lender can seize and sell if the loan is not repaid. A cosigner is another individual or entity who agrees to take responsibility for repaying the loan if the original borrower defaults. This is different from the aforementioned concept, but both involve measures related to failing to honor the repayment terms of a loan.