Property Ownership

In Mississippi, a 'deed in lieu of foreclosure' occurs when:

AThe lender forecloses without going to court
BThe borrower voluntarily deeds the property to the lender to avoid the foreclosure process✓ Correct
CThe lender accepts partial payment instead of full repayment
DA third party purchases the foreclosure debt

Explanation

A deed in lieu of foreclosure is a voluntary transfer of title from the defaulting borrower to the lender in exchange for releasing the borrower from the mortgage obligation. It avoids the time, cost, and damage to credit of a formal foreclosure. Lenders may agree to it if it is advantageous compared to foreclosure costs.

Related Mississippi Property Ownership Questions

Practice More Mississippi Real Estate Questions

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

Take the Free Mississippi Quiz →