When a borrower defaults on the payment requirements of a loan, there are several options that the lender has at its disposal. When the lender allows the borrower simply to convey the property to the lender rather than pursue a court supervised process of terminating all of the borrower's claims of ownership of the property, this is commonly referred to as:

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A deed in lieu of foreclosure occurs when a borrower agrees to turn over the property to the lender instead of going through the foreclosure process. This can save time and money for both parties involved.

When a Borrower Defaults on the Payment Requirements of a Loan