Escrow & Title
In Alaska, a 'deed in lieu of foreclosure' allows a borrower to:
ATransfer title to the lender to avoid foreclosure proceedings✓ Correct
BSell the property at a discounted price to a third party
CRefinance the delinquent mortgage
DDelay foreclosure for one year
Explanation
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.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
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