18. When a borrower defaults on the payment requirements of a loan, there are several options that the lender has. When the lender allows the borrower simply to convey the property to the lender rather than pursuing a court supervised process of terminating all of the borrower’s claims of ownership of the property, this is referred to as:
Deed in lieu of foreclosure is when the mortgagor exercises its option to avoid foreclosure (taking legal process) and acquires the ownership of the collateral from the borrower (usually a house).
