Deed in Lieu of Foreclosure Agreement

Borrower/Grantor: [Name] · Lender/Grantee: [Name] Property: [Address/Legal Description] · Loan Reference: [Loan #] · Date: [Date]

1. Voluntary Transfer

Borrower voluntarily conveys the property described above to Lender, in exchange for Lender's agreement to release Borrower from further liability under the loan referenced above, as described in Section 3.

2. Consideration

This deed is given in full satisfaction of Borrower's debt to Lender, currently in the outstanding amount of [Amount], and is not given under duress.

3. Release of Debt

[ ] Lender releases Borrower from all further personal liability for the debt (no deficiency claim). [ ] Lender retains the right to pursue a deficiency of [Amount], per applicable state law.

4. Condition of Title

Borrower represents there are no other liens, judgments, or claims against the property except: [List, or "none known"]. [Note: a deed in lieu generally does NOT eliminate junior liens — Lender should independently confirm title.]

5. Waiver of Redemption Rights (where applicable)

Borrower waives any statutory right of redemption applicable in [State], to the extent permitted by law.

6. Tax Consequences

Both parties acknowledge that debt forgiveness in this transaction may have tax consequences (potentially treated as taxable income to Borrower), and each party should consult their own tax advisor.

Borrower/Grantor: ______________________ Date: ____________ Lender/Grantee: ______________________ Date: ____________

*This document is provided for informational and educational purposes only and does not constitute legal or tax advice. A deed in lieu does NOT automatically wipe out junior liens (like a second mortgage or HOA lien) the way a foreclosure sale often does — a lender accepting one should independently confirm the title is actually clear of other claims before relying on it.*