When a Borrower Defaults on the Payment Requirements of a Loan

Multiple Choice

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:

A) Bankruptcy
B) Foreclosure
C) Deed in lieu of foreclosure
D) Equity right of redemption