Default and remedies
Deed in lieu of foreclosure
A borrower voluntarily conveying the property to the lender to avoid foreclosure
It saves both sides the cost and time of a foreclosure, and the lender must be willing to accept it. A lender generally will not where junior liens exist, because those liens survive rather than being wiped out as they would be at a foreclosure sale.
How the exam asks about it
The junior lien problem is the examinable reason a lender might refuse one.
Related terms
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