Deed in Lieu Agreement

DEED IN LIEU OF FORECLOSURE AGREEMENT
This Deed in Lieu of Foreclosure Agreement ("Agreement") is entered into as of [Date] between:
BORROWER(S): [Borrower Full Legal Name], [Borrower 2 Full Legal Name (if applicable)], residing at [Borrower Address] ("Borrower")
LENDER: [Lender Full Legal Name], [Lender Entity Type — e.g., a [State] corporation], with its principal place of business at [Lender Address] ("Lender")
RECITALS:
WHEREAS, Borrower is the owner of certain real property located at [Property Address], legally described as follows:
Legal Description: [Full Legal Description — e.g., "Lot [X], Block [Y], [Subdivision Name], [City], [County] County, [State], according to the plat recorded in Plat Book [X], Page [X], of the Public Records of [County] County, [State]"] ("Property");
WHEREAS, Borrower executed a promissory note dated [Note Date] in the original principal amount of $[Original Loan Amount] ("Note"), secured by a [Mortgage / Deed of Trust] on the Property recorded on [Recording Date] in [Recording Book/Instrument #] of the Public Records of [County] County, [State] ("Security Instrument"), Loan Number: [Loan Number];
WHEREAS, Borrower is in default under the Note and Security Instrument, having failed to make payments due since [Default Date];
WHEREAS, Borrower and Lender desire to avoid the expense and delay of foreclosure proceedings;
NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows:
SECTION 1 — VOLUNTARY TRANSFER OF TITLE
Borrower hereby voluntarily agrees to transfer and convey to Lender, by Warranty Deed / Quitclaim Deed (select one), all right, title, and interest in and to the Property, free and clear of all liens and encumbrances except as expressly noted herein, on or before [Transfer Date]. The transfer is made voluntarily and without duress. Borrower acknowledges having had the opportunity to consult with independent legal counsel prior to executing this Agreement.
SECTION 2 — LENDER ACCEPTANCE
Lender hereby accepts the voluntary transfer of the Property in full satisfaction of the obligations described herein, subject to the terms and conditions of this Agreement.
SECTION 3 — RELEASE OF PERSONAL LIABILITY AND DEBT FORGIVENESS
In consideration of Borrower's voluntary transfer of the Property, and upon recording of the deed, Lender agrees to:
(a) Accept the deed as full satisfaction of the debt evidenced by the Note;

[Section 2 — continued...]

[Section 3 — fill in your details...]

[Additional clauses and provisions apply...]