Escrow & Title

What is a 'deed in lieu of foreclosure' in Delaware?

AA deed transferring foreclosed property from the lender to the buyer at auction
BA voluntary transfer of property to the lender by a defaulting borrower to avoid foreclosure proceedings✓ Correct
CA deed prepared by the court to transfer title in a foreclosure
DA deed used to convey REO property

Explanation

A deed in lieu of foreclosure is a voluntary conveyance of the property by the defaulting borrower to the lender in satisfaction of the mortgage debt, allowing both parties to avoid the time and expense of foreclosure proceedings.

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