Escrow & Title
In Oregon, what is a 'deed in lieu of foreclosure'?
AA deed transferring property to heirs after death
BA voluntary transfer of property from a defaulting borrower to the lender to avoid foreclosure proceedings✓ Correct
CA court-ordered deed issued after a foreclosure auction
DA deed used to clear a title defect
Explanation
A deed in lieu of foreclosure is a voluntary agreement where a defaulting borrower transfers title to the lender in exchange for being released from the mortgage debt, avoiding the formal foreclosure process. In Oregon, lenders may accept deeds in lieu to avoid costly trustee's sale proceedings. Borrowers may still owe deficiency if the property value is less than the debt.
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