Property Ownership

In Virginia, when a property is transferred via a 'deed in lieu of foreclosure,' the lender receives:

AOnly the unpaid loan balance
BFee simple title to the property in exchange for releasing the mortgage debt✓ Correct
CA lien on future earnings
DOnly the down payment amount

Explanation

In a deed in lieu of foreclosure, the borrower voluntarily conveys fee simple title to the lender. The lender typically releases the borrower from the mortgage debt (depending on negotiated terms) in exchange.

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