We have had a few deeds in lieu of foreclosure accepted in the last few weeks. Interestingly, the lenders seem to acknowledge they should release the sellers from a deficiency without us having to do a lot of new legal work. I have found on short sales I frequently have to contact the banks to get things straightened out.
The California deeds in lieu were well done and we only suggested a few changes for clarity. The Florida deed in lieu paperwork was a mess. In my opinion the the paperwork misidentified the parties and did not address the release of liability from the note to my complete satisfaction. However, since my client had been and investor in the florida property we did not want to push the issue very hard.
I will say the Deed in Lieu paperwork can be pretty detailed and you definitely need to make sure all the parties are properly identified. Some lenders seem to have trouble identifying the parties clearly because there are so many involved.