---
kind: "section"
citation: "24 C.F.R. § 203.357"
title: "24"
number: "203.357"
heading: "Deed in lieu of foreclosure."
url: "https://uscodex.org/cfr/24/203.357"
---

# §203.357. Deed in lieu of foreclosure.

- (a) **Mortgagors owning one property.** In lieu of instituting or completing a foreclosure, the mortgagee may acquire property from one other than a corporate mortgagor by voluntary conveyance from the mortgagor who certifies that he does not own any other property subject to a mortgage insured or held by FHA. Conveyance of the property by deed in lieu of foreclosure is approved subject to the following requirements:
  - (1) The mortgage is in default at the time the deed is executed and delivered;
  - (2) The credit instrument is cancelled and surrendered to the mortgagor;
  - (3) The mortgage is satisfied of record as a part of the consideration for such conveyance;
  - (4) The deed from the mortgagor contains a covenant which warrants against the acts of the grantor and all claiming by, through, or under him and conveys good marketable title;
  - (5) The mortgagee transfers to the Commissioner good marketable title accompanied by satisfactory title evidence.
- (b) **Corporate mortgagors.** A mortgagee may accept a deed in lieu of foreclosure from a corporate mortgagor in compliance with the requirements of [paragraph (a)](#a) of this section, if the mortgagee obtains the prior written consent of the Commissioner.
- (c) **Mortgagors owning more than one property.** The mortgagee may accept a deed in lieu of foreclosure in compliance with the provisions of [paragraph (a)](#a) of this section, from an individual who owns more than one property which is subject to a mortgage insured or held by the FHA if the mortgagee obtains the prior written consent of the Commissioner.

## Notes

### Authority

Authority: 12 U.S.C. 1707, 1709, 1710, 1715b, 1715z-16, 1715u, and 1715z-21; 15 U.S.C. 1639c; 42 U.S.C. 3535(d).

### Source

Source: 36 FR 24508, Dec. 22, 1971, unless otherwise noted.