Finance
Nebraska's 'deed in lieu of foreclosure' transaction requires the lender's cooperation because:
ANebraska law requires all property transfers to be approved by a lender
BThe lender must agree to accept the deed and release the borrower from personal liability (if non-recourse or through a deficiency waiver)✓ Correct
CThe NREC must approve all deeds in lieu
DTitle insurance is not available for deeds in lieu without lender approval
Explanation
A deed in lieu requires negotiation with the lender — the lender agrees to accept title and typically releases the borrower from the debt. Without lender cooperation, there is no deed in lieu; the lender would simply foreclose.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
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