Finance
In Louisiana, a 'deed in lieu of foreclosure' allows a distressed borrower to:
AStop all foreclosure proceedings permanently
BTransfer title to the lender voluntarily in exchange for the lender releasing the mortgage debt, avoiding the foreclosure process✓ Correct
CTransfer the mortgage to a new buyer
DReduce the loan balance by making a lump sum payment
Explanation
A deed in lieu of foreclosure (in Louisiana, sometimes structured as a dation en paiement) allows the borrower to transfer title to the lender voluntarily in exchange for the lender's agreement to forgive the outstanding mortgage debt — avoiding the time and expense of formal foreclosure.
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