Finance

Vermont's 'deed in lieu of foreclosure' arrangement allows a homeowner facing foreclosure to:

APay only part of the mortgage balance
BVoluntarily convey the property to the lender to satisfy the debt, avoiding foreclosure proceedings✓ Correct
COccupy the property rent-free after the deed transfer
DTransfer the property to a family member instead

Explanation

A deed in lieu of foreclosure is a voluntary arrangement where the borrower transfers the property to the lender to satisfy the mortgage debt, avoiding the formal foreclosure process. The lender must agree, and the borrower may avoid some negative credit consequences.

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