Property Ownership

Under Vermont law, a 'deed in lieu of foreclosure' allows a borrower to:

AContinue living in the property rent-free for 12 months
BVoluntarily transfer property title to the lender to satisfy the mortgage debt and avoid the formal foreclosure process✓ Correct
CChallenge the validity of the mortgage
DTransfer the mortgage to a new borrower

Explanation

A deed in lieu of foreclosure is a voluntary agreement where the borrower conveys title directly to the lender in exchange for release from the mortgage debt, avoiding the time and expense of formal foreclosure proceedings. The lender may accept it if it results in better cost outcomes.

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