Escrow & Title

In South Carolina, a 'deed in lieu of foreclosure' is when:

AA court orders foreclosure instead of allowing a deed transfer
BThe borrower voluntarily conveys the property to the lender to avoid foreclosure proceedings✓ Correct
CThe lender accepts a partial payment to avoid foreclosure
DA third party purchases the property at a foreclosure auction

Explanation

A deed in lieu of foreclosure is a voluntary arrangement where the defaulting borrower transfers the property to the lender to satisfy the debt and avoid formal foreclosure. It can be faster and less costly than foreclosure for both parties.

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