Real Estate Licensing Virginia Real Estate Salesperson Exam - Topic 1 Question 13 Discussion

Actual exam question for Real Estate Licensing's Virginia Real Estate Salesperson exam

Question #: 13
Topic #: 1

A deed in lieu of foreclosure is often referred to as a "friendly foreclosure" because:

AThis alternative to foreclosure is an option only available to friends or family of the lender.

BThis alternative to foreclosure requires the agreement and cooperation of both lender and borrower.

CThis alternative to foreclosure is handled by legal representatives known as 'friends of the court.'

DThis alternative to foreclosure only takes place when the foreclosure sale buyer is a friend or family member.

Show Suggested Answer

Suggested Answer: B

A deed in lieu of foreclosure is when a borrower voluntarily conveys the property title back to the lender to avoid foreclosure.

It is called a ''friendly foreclosure'' because it requires mutual consent between borrower and lender, avoiding the formal court-ordered process.

Other options:

(A) Wrong -- not limited to friends/family.

(D) Wrong -- buyer's relationship irrelevant.

Virginia Real Estate Principles & Practices -- Foreclosure Alternatives

by Dante at May 05, 2026, 07:08 AM

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