Will my financial liability end by "Granting" back the house

[Mike]

Thank you Susanne for replying, it's my first time in the forum andamp; I like it a lot!Let me clarify what's going on. My friend andamp; I reached a mutual agreement that she should take the house back. Their is no escrow open. There is no Default judgment against me. My problem is that I can no longer make payments so I'm just giving the house back. She say's all we need to do is for me to sign a andquot;Grant Deedandquot; over to her andamp; she'll take it to get recorded or I can send it in. I was confused thinking that by signing the Grant Deed we were doing a andquot;Deed in Lieu of Foreclosure,andquot; but I guess this is not correct. Now, is this (grant deed) the correct thing to do? When I sign that Grant Deed over to her will all my financial liabilities end there? Should I sign first the Quit Claim deed andamp; have a clause stating that I am being released of any liability or obligations pertaining to that property? Then sign the Grant Deed? Or do I do one or the other or both. I hope I was able to explain myself better this time around, sorry about.