A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure. If accepted, which of the following will be true?

While a deed in lieu of foreclosure is indeed a voluntary action, it can still negatively impact the mortgagor's credit score. Such transactions are typically reported to credit bureaus, and the resulting default may remain on the buyer's credit report, affecting their creditworthiness.

Generally, a lender's rights under mortgage insurance or VA guarantees may be affected by a deed in lieu of foreclosure. These protections are typically exercised in traditional foreclosure processes rather than in voluntary agreements like deeds in lieu, where the lender accepts the property directly.

A deed in lieu of foreclosure effectively cancels the existing mortgage, meaning that the loan cannot be assumed by another party. The process transfers ownership of the property to the lender, terminating the contractual obligations of the original borrower, and thus eliminates the possibility of loan assumption.