When a lender accepts a deed from the buyer as a voluntary conveyance, it is known as what?

When a lender accepts a deed from the buyer as a voluntary conveyance, it is referred to as a deed in lieu of foreclosure. This process occurs when a borrower is unable to continue making mortgage payments and decides to hand over the property to the lender in order to avoid the foreclosure process. It allows both parties to streamline the transfer of ownership.

By accepting the deed in this manner, the lender typically agrees to release the borrower from their mortgage obligations, which can provide a smoother resolution for the borrower. It is an alternative solution that can benefit both the lender, who avoids the costs and time associated with foreclosure, and the borrower, who can mitigate the impact on their credit compared to a formal foreclosure proceeding.

In contrast, other types of deeds listed in the choices serve different purposes. A quitclaim deed transfers whatever interest the grantor has in a property without guarantees about the title, while a warranty deed offers a guarantee that the title is clear of any claims. A deed of trust involves a three-party agreement typically used in real estate transactions to secure a loan, rather than transferring ownership directly to the lender as in a deed in lieu of foreclosure.