Discuss Real Estate Licensing Virginia Real Estate Salesperson Exam Topic 1 Question 13

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.

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

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24 comments · newest first

Yuki 2 days ago

B is the best choice. It’s about working together.

Ryan 7 days ago

D is definitely wrong. It's broader than that.

Jackie 12 days ago

C sounds off. It's not about court friends.

Bette 18 days ago

Right, B shows mutual agreement.

Louis 23 days ago

A is misleading. It's not just for friends.

Felix 28 days ago

Agreed, B makes the most sense.

Lashawnda 1 month ago

I think it's B. Cooperation is key.

Billy 1 month ago

I feel confident about B too. It’s logical.

Margurite 1 month ago

B is definitely the best choice.

Daniel 2 months ago

C is also off. "Friends of the court" isn't relevant here.

Elly 2 months ago

D sounds wrong. It's not about who buys.

Thea 2 months ago

B shows mutual agreement, very important.

Rima 2 months ago

A is misleading. It's not just for friends.

Leota 2 months ago

Agreed, B makes the most sense.

Eveline 2 months ago

I think it's B. Cooperation is key.

Royce 3 months ago

Yeah, B makes the most sense here.

Gianna 3 months ago

I thought it was just a legal thing, not friendly at all!

Tiera 3 months ago

Wait, is it really called "friendly"? Sounds weird.

Nell 3 months ago

Totally agree, it's a cooperative process!

Shawna 3 months ago

It's B, both parties have to agree.

Nan 4 months ago

I feel like I’ve seen similar questions before, and they usually emphasize the mutual agreement aspect. B sounds correct to me, but I’ll double-check my notes.

Herminia 5 months ago

I’m confused about this one. I thought it was just a way to avoid the hassle of foreclosure, but I can’t recall why it’s called "friendly."

Latanya 5 months ago

I remember practicing a question like this, and I’m pretty sure it’s about the agreement between the lender and borrower. B seems right, but I’m not 100% sure.

Mel 5 months ago

I think a deed in lieu of foreclosure is called "friendly" because it involves cooperation, so I’m leaning towards B.

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