Property Ownership
A 'deed in lieu of foreclosure' in Minnesota occurs when:
AThe lender accepts the property from the defaulting borrower instead of proceeding with foreclosure✓ Correct
BA buyer assumes the seller's mortgage at closing
CThe seller pays off the mortgage at closing
DThe lender forgives the remaining loan balance
Explanation
In a deed in lieu of foreclosure, the defaulting homeowner voluntarily transfers the property to the lender (who accepts it) in exchange for the lender releasing the borrower from the mortgage debt and avoiding the formal foreclosure process. It is often used when the property value is less than the loan balance.
Related Minnesota Property Ownership Questions
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