Escrow & Title

In Oklahoma, a 'deed in lieu of foreclosure' is an arrangement where:

AThe lender files a substitute deed instead of a foreclosure action
BThe borrower voluntarily conveys title to the lender to avoid the foreclosure process, potentially avoiding deficiency judgments and preserving their credit better than foreclosure✓ Correct
CThe court approves a substitute deed for a minor defect
DA third party buys the foreclosure deed directly

Explanation

In a deed in lieu of foreclosure, the borrower voluntarily transfers the property to the lender to satisfy the debt. It avoids the formal foreclosure process, which can be faster and less expensive for both parties. The lender typically agrees to release the borrower from further personal liability.

Related Oklahoma Escrow & Title Questions

Practice More Oklahoma Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Oklahoma Quiz →