Contracts

In Rhode Island, what is a 'deed in lieu of foreclosure'?

AA deed transferring foreclosed property to the winning bidder
BA voluntary transfer of property by the borrower to the lender to avoid formal foreclosure proceedings✓ Correct
CA court-ordered transfer of property
DA deed conveying property free of all liens

Explanation

A deed in lieu of foreclosure allows a defaulting borrower to voluntarily transfer the property to the lender, avoiding the time and cost of formal foreclosure. The lender typically forgives the remaining debt in exchange.

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