What instrument might be executed when a mortgagor chooses to transfer the property to the mortgagee to avoid foreclosure?

The correct instrument in this scenario is a deed in lieu of foreclosure. This legal document allows a mortgagor, who is the borrower in a mortgage agreement, to voluntarily transfer ownership of the property back to the mortgagee, or lender, as an alternative to undergoing the foreclosure process. This arrangement can be beneficial for both parties involved: the lender avoids the time, expense, and complexities associated with foreclosure, while the borrower can mitigate the negative impacts of a foreclosure on their credit report.

A quitclaim deed is typically used to transfer ownership without warranty or guarantees but does not specifically relate to avoiding foreclosure. A foreclosure deed is a legal document that is executed once a property is actually foreclosed upon, signifying that ownership has transferred to the lender, which occurs after the foreclosure process has concluded. A grant deed is used to transfer property and typically includes warranties regarding the property title but is not specifically related to the foreclosure situation.