Answered: A lender whose mortgagor has defaulted…

A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure. If he accepts, which of the following will be TRUE?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure. If he accepts, which of the following will be TRUE?

a. Because it is voluntary, it will not be an adverse item on the buyer's credit.

b. The lender will take the title subject to any junior liens.

c. The lender will usually retain his rights under mortgage insurance or VA guarantee.

d. The loan will still be assumable.

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