Escrow & Title
A 'deed in lieu of foreclosure' in Montana means that:
AThe lender forecloses on the property after the deed is transferred
BThe borrower voluntarily transfers the deed to the lender to satisfy the debt and avoid formal foreclosure proceedings✓ Correct
CThe lender gives the deed to a third party to hold during foreclosure
DThe court issues a deed to the winning bidder at a foreclosure sale
Explanation
In a deed in lieu of foreclosure, the borrower voluntarily transfers ownership of the property to the lender in exchange for the lender releasing the borrower from the mortgage obligation, avoiding formal foreclosure proceedings.
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