Illinois Estoppel Affidavit and Agreement for Deed in Lieu of Foreclosure

Estoppel Affidavit and Agreement for Deed in Lieu of Foreclosure

This Estoppel Affidavit and Agreement for Deed in Lieu of Foreclosure Agreement (the Agreement) is executed and delivered, effective as of the by and between , of , a single person, hereinafter called the Borrower, and , a corporation organized and existing under the laws of the state of , with its principal office located at , referred to herein as Lender.

Whereas, Borrower deposes and states that he executed and delivered a Quitclaim Deed to Lender dated the , conveying to Lender, as a deed in lieu of foreclosure pursuant to 735 ILCS 5/15-1401, and in termination of Borrower’s interest in, the following described real estate:

(Legal Description)

The address of said property is , and is hereinafter referred to as the Mortgaged Property; and

Whereas, Borrower deposes and states that the Quitclaim Deed was made by him as a result of his request that Lender accept the Quitclaim Deed and was his free and voluntary act; that at the time of making the Quitclaim Deed and this Agreement he acknowledged that the full satisfaction of the mortgage indebtedness hereinafter described represented fair consideration for the Quitclaim Deed; that said Quitclaim Deed was not given as a preference against any other creditors of Borrower; that he has no other creditors whose rights would be prejudiced by the conveyance of the Mortgaged Property; and, that in tendering the Quitclaim to Lender, and in executing the same, he was not acting under any duress, undue influence, misapprehension or misrepresentation by Lender, or the agent or attorney or other representative of Lender, and that it was his intention to convey and by the Quitclaim Deed he did convey to Lender, all his right, title and interest, absolutely, in and to the Mortgaged Property; and

Whereas, Lender is the present legal and equitable holder of the Mortgage on the Mortgaged Property, as more particularly described the Quitclaim Deed recorded in the land records of the County Clerk and Recorder of Deeds for , Illinois, in Book at Page and herein, and said Lender is entitled to all of the benefits of same.

Now, therefore, in consideration of the foregoing, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Borrower and Lender hereby agree as follows:

1. That the Quitclaim Deed was an absolute conveyance of the title to the Mortgaged Property to Lender, in effect as well as form, and terminated Borrower’s interest in the Mortgaged Property, and was not and is not intended as a mortgage, trust conveyance, or security interest of any kind, and that possession of the Mortgaged Property will be surrendered to Lender on or before the Effective Date.

2. That as consideration for the execution and delivery of the Quitclaim Deed, Lender will cancel the mortgage indebtedness as hereinafter described upon execution of this Agreement and recording of the Quitclaim Deed.

3. That Lender:

A. Will accept the Quitclaim Deed in full satisfaction and the cancellation of all debts, obligations, costs and charges heretofore existing under, and by virtue of the terms of a certain Mortgage in default heretofore existing on, and constituting a first mortgage on, the Mortgaged Property, executed and delivered by Borrower, as mortgagor, to Lender, as mortgagee, dated , and recorded on , in the land records of the County Clerk and Recorder of Deeds for , Illinois, as document number (the mortgage), to secure a note dated , in the original principal amount of $ Dollars (the Note), the amount due and owing on the Note as of , being $ ;

B. Will accept the Quitclaim Deed; and

C. Will release and cancel the Mortgage and will cancel the Note provided that there are no liens, encumbrances or mortgages against the Mortgaged Property except the Mortgage and the lien for the general real estate taxes not yet due and payable.

4. Borrower hereby waives all rights of Homestead exemption, and acknowledges that the execution and delivery of the Quitclaim Deed shall not constitute an accord and satisfaction and release of the Mortgage and satisfaction of the Note until such time that Lender in its discretion decides to record the Quitclaim Deed.

5. That the Quitclaim Deed was executed and delivered by Borrower with the express understanding that it does not operate, even though placed of record, to effect a merger of Lender’s interest as mortgagee so as to extinguish the mortgage lien of the Mortgage, and that its receipt by Lender does not constitute legal delivery and acceptance and shall be of no binding force or effect whatsoever until such time that title to the Mortgaged Property is approved by the attorney for Lender.

6. That the receipt, recording and acceptance of the Quitclaim Deed shall relieve from personal liability Borrower and all other persons who may owe payment or the performance of the Note, including guarantors of such indebtedness or obligation, but shall in no way limit or restrict the rights of Lender, or the rights of its successors in interest or assigns, to foreclose the Mortgage if foreclosure is desirable.

7. Borrower hereby transfers and assigns to Lender all of his right, title and interest in and to the liability and hazard insurance, if any, on the Mortgaged Property.

8. That this Agreement is made by Borrower and Lender for the mutual protection and benefit of himself, his successors and assigns, and all other parties hereinafter dealing with, or who may acquire, any interest in the Mortgaged Property, the Mortgage and/or the Note.

9. That the consideration for this Agreement, and all promises, agreements and understandings between Borrower and Lender in respect to and relating to the subject matter hereof are embodied and expressed herein.

10. This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois.

11. Every provision of this Agreement is intended to be severable. In the event any term or provision herein is declared illegal, invalid or unenforceable for any reason whatsoever, by a Court of competent jurisdiction, such illegality, invalidity or unenforceability shall not affect the balance of the terms and provisions hereof, which terms and provisions shall be binding and enforceable and in full force and effect.

IN WITNESS WHEREOF, Borrower and Lender respectively executed and thereafter caused this Agreement to be delivered, as of the Effective Date, in pursuance of the uses and purposes herein described and contained.

State of Illinois

County of

I, the undersigned, a Notary Public, in and for the County and State aforesaid, DO HEREBY CERTIFY that , a single person, personally known to me to be the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged that he signed, sealed and delivered the said instrument as his free and voluntary act, for the uses and purposes therein set forth, including the release and waiver of the right of homestead.

Given under my hand and notarial seal this .

Notary Seal

State of Illinois

County of

I, the undersigned, a Notary Public, in and for the County and State aforesaid, DO HEREBY CERTIFY that , personally known to me to be the and respectively, of , a corporation, whose names are subscribed to the foregoing instrument, appeared before me this day in person and signed said instrument as said officers of , pursuant to the authority given by the Board of Directors of said corporation as their free and voluntary act, and as the free and voluntary act of said corporation, for the uses and purposes therein set forth.

Given under my hand and notarial seal this .

Notary Seal

The document was prepared by .