Escrow & Title

In Oregon, a 'deed in lieu of foreclosure' means:

AThe lender forecloses using a judicial process
BThe borrower voluntarily transfers title to the lender in exchange for the lender releasing the debt obligation✓ Correct
CThe borrower files bankruptcy to prevent foreclosure
DThe property is sold at a trustee's sale

Explanation

A deed in lieu of foreclosure is a voluntary transaction where a defaulting borrower deeds the property to the lender in exchange for being released from the mortgage debt. Benefits: avoids formal foreclosure proceedings and potential deficiency judgment.

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