Escrow & Title

In NH, a 'deed in lieu of foreclosure' is an arrangement where:

AThe lender accepts less than the mortgage balance at closing
BThe borrower voluntarily conveys the property to the lender to avoid foreclosure proceedings✓ Correct
CThe lender transfers their mortgage to another lender
DThe court appoints a receiver to manage the foreclosed property

Explanation

A deed in lieu of foreclosure is a voluntary arrangement where the defaulting borrower transfers the property to the lender in exchange for being released from the mortgage obligation. It avoids the time and expense of formal foreclosure proceedings but requires lender approval and may have tax consequences.

Related New Hampshire Escrow & Title Questions

Practice More New Hampshire Real Estate Questions

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

Take the Free New Hampshire Quiz →