FinanceIntermediateDelaware Exam

A deed in lieu of foreclosure allows a borrower to:

AKeep the property by making overdue payments
BVoluntarily transfer title to the lender to avoid foreclosure proceedingsCorrect
CSell the property below market value with lender approval
DTransfer the mortgage to another borrower

Why Voluntarily transfer title to the lender to avoid foreclosure proceedings Is Correct

Answer B: Voluntarily transfer title to the lender to avoid foreclosure proceedings

In a deed in lieu of foreclosure, the borrower voluntarily conveys title to the lender in exchange for the lender releasing the mortgage debt and avoiding the formal foreclosure process.

Exam Tip: Finance

Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.

Key Finance Terms in This Question

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