Escrow & TitleIntermediateArizona Exam

In Arizona, a 'deed in lieu of foreclosure' affects the borrower's credit similar to:

AA standard home sale
BA foreclosure—both significantly damage creditCorrect
CA refinance
DA short sale without deficiency

Why A foreclosure—both significantly damage credit Is Correct

Answer B: A foreclosure—both significantly damage credit

A deed in lieu of foreclosure, like a foreclosure and short sale, significantly damages the borrower's credit (typically reported as a foreclosure or deed in lieu). The impact is generally similar to a completed foreclosure.

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.

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