Property Ownership
In West Virginia, a 'deed in lieu of foreclosure' occurs when:
AA court orders the property transferred to the lender after a failed foreclosure
BA defaulting borrower voluntarily conveys the property to the lender to avoid foreclosure✓ Correct
CThe sheriff conducts a foreclosure sale and transfers title by deed
DThe lender transfers title back to the borrower after paying off the debt
Explanation
A deed in lieu of foreclosure is a voluntary conveyance of the property from the defaulting borrower to the lender. It avoids the costs and time of formal foreclosure proceedings.
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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).
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.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
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