Bargain and Sale Deed in Lieu of Foreclosure
(Commercial) (Pro-Lender) (NJ)

Summary

This template is a deed in lieu of foreclosure that is used to transfer title to collateral under a defaulted loan to a lender in New Jersey. This template is drafted from the perspective of the lender but also includes guidance for the borrower and the guarantor. This template contains practical guidance and drafting notes. New Jersey recognizes judicial foreclosure. See N.J. Court Rules, R. 4:64-1; see also N.J. Court Rules, R. 1:5-6. For further information on foreclosure requirements in New Jersey, see Commercial Foreclosure (NJ). The deed in lieu of foreclosure should be recorded in the same place as the related mortgage is recorded, which will be in the office of the county clerk in the county where the subject property is located. New Jersey mortgages are recorded pursuant to the requirements of N.J. Stat. § 46:26A-1 et seq. This template is suggested for use in New Jersey, however, local counsel should be engaged to ensure that all state-specific requirements are met, and that the agreement and ancillary documents comply with New Jersey law in all respects. For a detailed discussion of deed in lieu of foreclosure agreements in the context of commercial real estate loans, see Foreclosure of Real Property. For a full listing of key content regarding New Jersey commercial foreclosures, see Commercial Foreclosure Resource Kit (NJ). For further information on commercial real estate financing transactions in New Jersey, see Commercial Real Estate Acquisition Loan Resource Kit (NJ), Commercial Real Estate Financing (NJ), and Commercial Real Estate Financing Transactions (NJ). For a detailed discussion of workouts of commercial real estate loans, see Workouts of Commercial Real Estate Loans. For a template of a New Jersey forbearance agreement, see Forbearance Agreement (Commercial Real Estate Loan) (NJ).