Property Ownership

In Michigan, a deed in lieu of foreclosure involves:

AA court ordering the sale of property
BThe borrower voluntarily transferring title to the lender to avoid foreclosure proceedings✓ Correct
CA third-party purchase of the property before foreclosure
DThe lender waiving all deficiency rights

Explanation

In a deed in lieu of foreclosure, the borrower conveys the property voluntarily to the lender in exchange for release from the mortgage obligation, avoiding the time and expense of formal foreclosure proceedings.

Related Michigan Property Ownership Questions

Practice More Michigan Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Michigan Quiz →