Escrow & Title
A 'deed in lieu of foreclosure' in NC means the borrower:
APays off the mortgage to prevent foreclosure
BVoluntarily transfers title to the lender to avoid foreclosure proceedings✓ Correct
CSells the property to a third party before foreclosure
DFiles for bankruptcy to delay foreclosure
Explanation
In a deed in lieu of foreclosure, the borrower voluntarily conveys the property to the lender to satisfy the debt and avoid the formal foreclosure process. The lender must agree to accept the deed and typically releases the borrower from the mortgage obligation.
Related North Carolina Escrow & Title Questions
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