Escrow & Title
A deed in lieu of foreclosure is used when a borrower:
AWants to convert their mortgage to a fixed rate
BVoluntarily conveys the property to the lender to avoid foreclosure proceedings✓ Correct
CSeeks a court order to delay foreclosure
DTransfers the mortgage to a new buyer
Explanation
A deed in lieu of foreclosure is a voluntary arrangement where the borrower transfers title to the lender to satisfy the debt and avoid the formal foreclosure process. The lender must agree, and the deed must be given voluntarily.
Related Arkansas Escrow & Title Questions
- A title search is performed to:
- Which of the following items on a closing disclosure is typically a prepaid item (not a recurring cost)?
- At closing, the buyer's earnest money deposit is typically applied to:
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- In Arkansas, real estate closing typically involves:
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