While discussing workout options, the lender says he will accept a deed-in-lieu of foreclosure. What does this mean for the borrower?

		The borrower must transfer title to the mortgaged property to the lender in order to satisfy the loan default.
		The borrower must pay all delinquent payments and transfer title to the lender
		The borrower must sell the mortgaged property in a short sale to a third party
		The borrower and the lender should proceed to traditional foreclosure proceedings

A workout investigation of a residential loan may discover a claim of _____ if a lender failed to disclose a material fact related to the terms of the loan.

		Fraud
		Negligence
		Bad faith
		Breach of contract

If the value of the property is less than the amount due under the mortgage, and the borrower has substantial nonexempt assets, the lender will most likely take which of the following actions upon default by the borrower?

		Pursue judicial foreclosure
		Sue for damages for the amount due under the mortgage
		Forgive the mortgage
		Compromise a payment plan to recover the value of the property