Looking for a lifeline out of your mortgage debt? Grab our deed in lieu of foreclosure letter and escape the evil clutches of foreclosure right now.
So what is deed in lieu of foreclosure? Without digging too deep into ancient wordplay, "in lieu" is an old French word for "instead". When you string it all together, it becomes "giving the deed away instead of facing foreclosure."
When you can no longer keep up with the mortgage bills, handing the deed over to the lender may be your best chance out of foreclosure nightmare... if you can convince your lender to take the deed and forgive your debts.
A deed in lieu still makes a dent to your credit score though it's not quite as devastating as the big blow that your score will take from a full-blown foreclosure. Plus having a "deed in lieu - paid in full" on your credit report looks a lot less jarring than having "foreclosure" stamped all over it.
Just some quick tips for filling in the blanks below: The property owner is the grantor and the lender is the grantee. Be sure to fill in your lender's exact legal name and mailing address - It never hurts to give them a call to double check.
*Make sure this sample deed in lieu of foreclosure form complies with your local real estate laws before using it. If you have any doubts, you can ask a real estate lawyer online.
This Deed is made on this day of _______________, 20__, between the Grantor ___________
___________________ of address __________________________________________________ and the Grantee ______________________________ of address _________________________
For valuable consideration, the receipt of which is hereby acknowledged, the Grantor hereby deeds to the Grantee in lieu of foreclosure, the following described real property:
Property Address: _________________________________________________________________
Legal Description: _________________________________________________________________
This deed is an absolute conveyance, the Grantor having sold the above described real property to the Grantee for good and valuable consideration, such consideration being the full satisfaction of all obligations secured by the deed of trust heretofore executed by the Grantor. The Grantor declares that this conveyance is freely and fairly made and that there are no agreements, written or oral, other than this deed between the Grantor and Grantee with respect to the real property described above.
EXECUTED this day of _______________, 20__.
Grantor Name: _________________________
Grantor Signature: ______________________
STATE OF _________________________
COUNTY OF _________________________
On this day, personally appeared before me, _________________________, to me known to be the person(s) described in and who executed the within instrument, and acknowledged that he/she signed the same as his/her voluntary act and deed, for the uses and purposes therein mentioned.
Witness my hand and official seal hereto affixed on this day of _______________, 20__.
Notary's Public Signature: ______________________
My commission expires _______________.