Deed In Lieu Agreement Definition

There is a certain risk for the lender if there are rights of pledge intervening, since a deed is in the place of the property that is subject to the effect of the junior pledge rights. Normally, a seizure destroys other pledge rights if they were registered under the mortgage or trust deed. To avoid claiming that the transaction was involuntary, it is common for the borrower to launch the offer to return the property to the lender. As a result, the borrower sends the lender a written offer in which he voluntarily offers the lender to despise the property and explain the reasons for it. The mere sub-inge of an act performed by the hypothecary debtor or the registration of an act by the hypothecary debtor does not constitute the acceptance of an act instead of enforcement by the hypothecary creditor. . . .