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Deed in Lieu of Foreclosure: Definition & Effects

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What may a bank require before it agrees to accept a deed in lieu of foreclosure?

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1. Which of the following is true of a deed in lieu of foreclosure?

2. What does it mean if a mortgage is 'underwater?'

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About This Quiz & Worksheet

This worksheet/quiz combo deals with aspects of reaching an agreement with an institution to accept a deed in lieu of foreclosure. Topics covered include bank stipulations and the nature of the parties involved.

Quiz & Worksheet Goals

Use these assessments to test your awareness of the following:

  • Duties prior to reaching an agreement with a bank
  • What a bank may require of you personally
  • Terms for the parties involved
  • Mortgages
  • Benefit of a deed in lieu of foreclosure

Skills Practiced

This quiz and worksheet provide you the opportunity to practice the following skills:

  • Reading comprehension - ensure that you grasp the most important information from the related lesson on a deed in lieu of foreclosure
  • Interpreting information - verify that you can read information about the process of obtaining an agreement from a bank regarding a deed in lieu of foreclosure and interpret it correctly
  • Information recall - access the knowledge you've gained regarding what a bank may and may not require

Additional Learning

In order to get more information on this matter, read through the accompanying lesson entitled Deed in Lieu of Foreclosure: Definition & Effects. The lesson considers the following objectives:

  • Discuss the main reason why a bank will accept a deed in lieu of foreclosure
  • Explain why a bank may be reluctant to accept a deed in lieu of foreclosure
  • Define a short sale
  • Comment on the effect declaring bankruptcy can have on an individual's credit
  • Examine what is meant by deficiency
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