Escrow & Title
In Florida, a 'deed in lieu of foreclosure' occurs when:
AA lender forecloses on a property without a court order
BA borrower voluntarily transfers the property deed to the lender to avoid foreclosure✓ Correct
CA buyer purchases a property at a foreclosure auction
DA title company issues a deed guaranteeing clear title
Explanation
A deed in lieu of foreclosure is an alternative to foreclosure where the borrower voluntarily conveys the property to the lender in exchange for release from the mortgage obligation. Both parties must agree, and the lender may decline if there are junior liens.
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