Escrow & Title
In South Dakota, a 'deed in lieu of foreclosure' is an arrangement where:
AThe lender forecloses on the deed of trust without court action
BThe borrower voluntarily transfers title to the lender to avoid foreclosure proceedings✓ Correct
CThe court orders the deed transferred to the highest bidder
DThe buyer deeds the property back to the seller after failing to complete the purchase
Explanation
A deed in lieu of foreclosure allows a defaulting borrower to deed the property to the lender voluntarily, avoiding the time and expense of foreclosure proceedings. The lender must agree to accept it.
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