Escrow & Title

A deed in lieu of foreclosure allows a borrower in default to:

ATransfer title of the property to the lender voluntarily to avoid foreclosure proceedings✓ Correct
BKeep the property while negotiating a loan modification
CForce the lender to accept a short sale
DDischarge the mortgage through bankruptcy

Explanation

A deed in lieu of foreclosure is a voluntary transfer of property title to the lender by a defaulting borrower as an alternative to formal foreclosure proceedings.

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