Escrow & Title
In Kansas, what is a 'deed in lieu of foreclosure' and why might a borrower use one?
AA deed from a trustee in a foreclosure sale
BA voluntary conveyance of property from a defaulting borrower to the lender to avoid the cost, time, and credit damage of formal foreclosure proceedings✓ Correct
CA deed transferring property to a family member to avoid creditors
DA deed required before a foreclosure can begin
Explanation
A deed in lieu of foreclosure is a voluntary transfer of the property to the lender in satisfaction of the debt. It avoids lengthy and costly foreclosure proceedings, though it may still damage the borrower's credit and the lender must agree to accept it.
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