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Sample Deed-in-Lieu Letter

How do I write a letter requesting a Deed in Lieu of foreclosure?

Use a Deed-in-Lieu of Foreclosure letter when you can’t find a buyer for your house and want to give the lender the keys. If you have a buyer, but their offer is below the amount you owe the bank you should use a short sale hardship letter.

I have provided an example letter below for your reference. Keep in mind your situation is unique. Therefore, you will have to make modifications to fit your individual situation.

A Deed in Lieu will have an impact on your credit. Therefore, its important that you monitor your credit report regularly.

Deed in Lieu Letter Example

As you are aware, my loan #_______________, is in arrears. I have been unable to make payments on my loan obligation for the last _____ months. I contacted you earlier to discuss my situation. I spoke with ___________________ who told me that she was unable to talk to me about a Deed in Lieu because I had only missed ____ payments. She did sent me a Borrower’s Financial Statement and Explanation of Hardship for me to review and fill out.


My house has been on the market for ______ months. My agent is _________________ and her/his phone number is ______________________. I have enclosed an authorization from her/him to discuss my situation with you. [Your agent can give you an authorization form.] During that time we have had no/very little interest in our house. Home prices have dropped dramatically in our neighborhood and there is little likelihood that our house will sell.We have been unable to make our house payments because of _______________ {medical/job/divorce, etc.} issues. [Sample text regarding reason for request: My husband/wife left me six months ago and I have had to support my ____ children on my monthly income of $______________. This amount is not enough to pay the bills and the house payment.

[Sample: I am prepared to vacate my home and move in with my parents. I have kept the house in good condition and my son mows the lawn every weekend.]
I have enclosed a Borrower’s Financial Statement and Explanation of Hardship Form that I received from you. [You should ask for these forms from the lender].

I am prepared to execute a deed to _________________, Inc. [Name of lender] upon presentation to me. I think that this workout solution is in everyone’s best interest.

Wondering how to write a short sale letter? I’ve written a sample for you to follow!

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