A modification or forbearance wasn't enough and the loan can't be saved — but you'd rather not spend months and money on a foreclosure? PaperKit drafts a proper Deed in Lieu of Foreclosure Agreement: the borrower voluntarily conveys the mortgaged property back to the lender to satisfy or reduce the debt and avoid foreclosure. Pick the settlement: full satisfaction (the conveyance wipes out the debt and the lender releases the borrower), partial reduction (the property is credited at its agreed value and PaperKit computes the surviving deficiency the borrower still owes), or cash for keys (the lender pays a relocation incentive for a clean, timely move-out). Choose the context — a residential or a commercial mortgage — set the outstanding balance, the property value and the move-out date, and PaperKit adds a voluntary/arm's-length estoppel affidavit, an anti-merger/preservation-of-remedies clause, a borrower release and the conveyance, possession and representation sections, then assembles the whole agreement. It's the workout-branch rung after the loan modification (when the property has to go back). Hosted online for the borrower/grantor to review & e-sign. Clean PDF.
The big lever — it decides how the deed in lieu settles the loan and drives the deficiency math.
Full satisfaction: the conveyance of the property is accepted in full satisfaction of the debt. No deficiency survives; the note is cancelled and (with the release below) the borrower is released.
Tunes the recitals, the party labels and the document title.
A real, section-by-section deed in lieu of foreclosure agreement. The settlement choice drives the effect on the debt and any surviving deficiency. Publish to get a hosted link the borrower can e-accept online.
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A deed in lieu of foreclosure agreement is a template for convenience, not legal advice. A deed in lieu conveys real property and affects the borrower's liability, junior liens, and tax and credit consequences; the actual deed must be separately executed, notarized and recorded, and lenders customarily require title work, an estoppel affidavit and an anti-merger recital. Applicable state law, the loan and security documents, any guaranties and title insurance requirements continue to govern enforceability. PaperKit is not a law firm. Review the agreement and consult a qualified attorney.