Escrow & Title
In New Jersey, a 'deed in lieu of foreclosure' is an arrangement where:
AThe sheriff conducts a foreclosure sale
BThe borrower voluntarily conveys the property to the lender to satisfy the debt and avoid a foreclosure lawsuit✓ Correct
CThe lender allows the borrower additional time to sell the property
DA third party purchases the property and pays off the loan
Explanation
In a deed in lieu of foreclosure, the borrower gives the deed to the lender, who accepts it as satisfaction of the debt without going through the full foreclosure process. This is faster for both parties, though the lender must ensure the title is clear and all subordinate liens are resolved.
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