Escrow & Title
In New York, a 'deed in lieu of foreclosure' is an arrangement where:
AThe borrower sues the lender to prevent foreclosure
BThe borrower voluntarily conveys title to the lender to satisfy the debt and avoid formal foreclosure proceedings✓ Correct
CThe court appoints a receiver to manage the property
DThe property is sold at auction by the county sheriff
Explanation
A deed in lieu of foreclosure allows a defaulting borrower to avoid the lengthy and costly judicial foreclosure process by voluntarily transferring title to the lender in satisfaction of the debt, typically when the property is 'underwater.'
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