Escrow & Title
In New York, a 'deed in lieu of foreclosure' means the borrower:
AFiles a lawsuit to stop the foreclosure
BVoluntarily conveys the property to the lender to satisfy the debt and avoid the formal foreclosure process✓ Correct
CAuctions the property before the foreclosure sale
DAllows a third party to take over the mortgage payments
Explanation
A deed in lieu of foreclosure is a voluntary conveyance of the property from the borrower to the lender as an alternative to formal foreclosure proceedings. The lender may agree to accept the deed in exchange for releasing the borrower from personal liability on the debt.
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