Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good afternoon. You can do the deed, have it witnessed and notarized, and then give it to the bank. But, I would advise against it. Florida is a deficiency state, meaning that as borrower the bank can pursue you for any deficiency. Whether or not they will depends upon their
assessment of the collectibility of a deficiency judgment. So, if the borrower
can convince them there is nothing for them to get, and that if they were to
pursue a judgment, the borrower would simply file for bankruptcy protection and
get the judgment discharged-and even if the borrower has no intention of doing
so, it is still good leverage with the bank because they do not know whether
the borrower will not do so--- then it is unlikely the lender will spend the
time and money necessary to get a judgment they believe is uncollectible in the
end.

The reason you don't want to just give a bank a deed in lieu is that you want to get something from the bank in exchange for saving the bank the time and expense of Foreclosure. What you want from them is a release from the obligation for any deficiency. If you simply give them the deed, you don't get this and they can still pursue you. The language you want them to agree to is something very similar to the following:

"This deed is an absolute
conveyance for a fair and adequate consideration, being the full satisfaction
of all obligations secured by the Deed of Trust executed by _______________________,
trustor, in favor of _______________________________, Beneficiary, recorded on
__________________ as Instrument No. _________________, Official Records of
__________________ County, _____________, plus the additional payment of
$______________. Grantor declares that this conveyance is freely and fairly
made, and that there are no agreements, oral or written, other than this deed
between grantor and grantee with respect to the property conveyed by this deed.
By accepting this deed, Grantee specifically intends that a Merger of title
shall not occur and that the deed of trust shall continue as a lien on
the property until it is reconveyed.

This statement is made for the
protection and benefit of the grantee, the grantee's successors and assigns,
and all other parties hereafter dealing with or who may acquire an interest in
the property, and for the benefit of all Title Insurance companies that insure
title to the property."

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