Escrow & Title
A 'deed in lieu of foreclosure' in Utah means the borrower:
ASells the property before foreclosure
BVoluntarily conveys the property to the lender to avoid foreclosure proceedings✓ Correct
CRefinances to avoid foreclosure
DTransfers the property to a family member
Explanation
In a deed in lieu of foreclosure, the borrower voluntarily deeds the property to the lender in exchange for being released from the mortgage obligation, avoiding the formal foreclosure process.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
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