Property Ownership
In Hawaii, a 'deed in lieu of foreclosure' is an arrangement where:
AA. The court orders a deed to be issued to the buyer after foreclosure
BB. The borrower voluntarily transfers title to the lender to avoid foreclosure proceedings✓ Correct
CC. The lender delivers a deed to the borrower after the loan is paid off
DD. The buyer receives a deed despite an existing mortgage
Explanation
A deed in lieu allows the borrower to transfer title voluntarily to the lender to avoid the time, expense, and credit damage of formal foreclosure proceedings.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
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