Escrow & Title

Which of the following describes a 'deed in lieu of foreclosure' in Connecticut?

AThe borrower sues the lender to stop foreclosure
BThe borrower voluntarily transfers title to the lender to avoid the formal foreclosure process✓ Correct
CThe lender accepts a short sale of the property
DThe borrower files for bankruptcy to delay foreclosure

Explanation

A deed in lieu of foreclosure is a voluntary transfer of title from the borrower to the lender to satisfy the debt and avoid foreclosure. Both parties typically benefit: the borrower avoids foreclosure on their credit record; the lender avoids the cost of foreclosure.

Related Connecticut Escrow & Title Questions

Practice More Connecticut Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Connecticut Quiz →