(735 ILCS 5/15-1401)
(from Ch. 110, par. 15-1401)
Deed in Lieu of Foreclosure.
The mortgagor and
mortgagee may agree on a termination of the mortgagor's interest in the
mortgaged real estate after a default by a mortgagor. Any mortgagee or
mortgagee's nominee may accept a deed from the mortgagor in lieu of
foreclosure subject to any other claims or liens affecting the real estate.
Acceptance of a deed in lieu of foreclosure shall relieve from personal
liability all persons who may owe payment or the performance of other
obligations secured by the mortgage, including guarantors of such
indebtedness or obligations, except to the extent a person agrees not to be
relieved in an instrument executed contemporaneously. A deed in lieu of
foreclosure, whether to the mortgagee or mortgagee's nominee, shall not
effect a merger of the mortgagee's interest as mortgagee and the
mortgagee's interest derived from the deed in lieu of foreclosure.
The mere tender of an executed deed by the mortgagor or the recording of
a deed by the mortgagor to the mortgagee shall not constitute acceptance by
the mortgagee of a deed in lieu of foreclosure.
(Source: P.A. 86-974.)