Property Ownership

In NJ, a 'deed in lieu of foreclosure' is a transaction where:

AThe buyer pays the seller in installments in lieu of a traditional closing
BA defaulting borrower voluntarily transfers their property to the lender to avoid a formal foreclosure proceeding✓ Correct
CThe lender transfers the deed to a new investor
DThe county sheriff conducts a deed sale

Explanation

A deed in lieu of foreclosure is a voluntary conveyance of property from the defaulting borrower to the lender as an alternative to foreclosure. It saves both parties the time and cost of formal foreclosure proceedings.

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