Deed in Lieu of Foreclosure Template

Prepared By: [Name or Law Firm]
[Address]
[City, State, ZIP Code]

After Recording Return To:
[Lender Name]
[Address]
[City, State, ZIP Code]

Date: [Date]

1. Parties

This Deed in Lieu of Foreclosure is made between:

Grantor / Borrower: [Borrower Full Name]
Address: [Borrower Address]

Grantee / Lender: [Lender Full Name or Company Name]
Address: [Lender Address]

2. Property Information

Property Address: [Property Address]

Legal Description:

[Insert full legal description of the property]

Parcel Number: [Parcel Number, if applicable]

3. Loan Information

This transfer relates to the following loan or secured obligation:

Loan Number: [Loan Number]
Date of Mortgage or Deed of Trust: [Date]
Original Principal Amount: [Amount]
Recording Information: [Book/Page or Instrument Number, if applicable]

4. Transfer of Property

For valuable consideration, including the lender’s agreement to accept this transfer in lieu of foreclosure, the Grantor hereby grants, conveys, and transfers to the Grantee all of the Grantor’s right, title, and interest in and to the property described above.

5. Debt Satisfaction

The parties agree that this transfer is made in lieu of foreclosure.

The secured debt shall be treated as follows:

☐ accepted in full satisfaction of the debt
☐ accepted in partial satisfaction of the debt
☐ subject to a separate written agreement regarding any remaining balance

Additional terms, if any:

[Insert terms regarding release, deficiency, or other obligations]

6. Possession and Condition

The Grantor agrees that possession of the property shall be delivered as follows:

☐ on signing
☐ on [Date]
☐ under the terms of a separate occupancy agreement

The Grantor states that, to the best of their knowledge, the property is being transferred in its current condition unless otherwise stated below:

[Insert any agreed property condition terms]

7. Liens and Other Interests

The Grantor states that the following liens, claims, tenants, or other interests may affect the property:

[Describe any junior liens, tax issues, leases, or other recorded interests, if applicable]

8. Voluntary Agreement

The Grantor confirms that this transfer is made voluntarily and without improper pressure or coercion. The Grantor further acknowledges that they have had the opportunity to review the terms of this document and seek independent advice before signing.

9. Governing Law

This Deed in Lieu of Foreclosure shall be governed by the laws of the state of [State].

10. Signatures

Grantor / Borrower Signature: __________________________
Name: [Borrower Full Name]
Date: [Date]

Co-Borrower Signature: __________________________
Name: [Co-Borrower Full Name, if applicable]
Date: [Date]

Accepted by Grantee / Lender: __________________________
Name: [Authorized Representative Name]
Title: [Title]
Date: [Date]

11. Notary Acknowledgment

State of [State]
County of [County]

On this [Day] of [Month], [Year], before me, the undersigned notary public, personally appeared [Name of Signer(s)], known to me or satisfactorily proven to be the person(s) whose name(s) are subscribed to this instrument, and acknowledged that they executed the same for the purposes stated herein.

Notary Public Signature: __________________________
Name: [Notary Name]
My Commission Expires: [Date]