Escrow & TitleIntermediateAlaska Exam

In Alaska, a 'deed in lieu of foreclosure' allows a borrower to:

ATransfer title to the lender to avoid foreclosure proceedingsCorrect
BSell the property at a discounted price to a third party, in general
CRefinance the delinquent mortgage
DDelay foreclosure for one year

Why Transfer title to the lender to avoid foreclosure proceedings Is Correct

Answer A: Transfer title to the lender to avoid foreclosure proceedings

In a deed in lieu of foreclosure, the borrower voluntarily transfers the property's title to the lender in exchange for release from the mortgage obligation. It avoids the time and cost of a formal foreclosure but the lender must agree.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

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