Voluntary Conveyance

AAA

DEFINITION of 'Voluntary Conveyance'

Transfer of title from a delinquent homeowner to a lender to satisfy the balance on a loan in default. The delinquent borrower transfers title on a voluntary basis, in order to avoid foreclosure.


Voluntary conveyance also refers to a transfer of property made without adequate consideration, such as a deed transferring title to a family member or relative. In this case, a voluntary conveyance has obvious potential for fraud, and in fact, is one of the vehicles used by unscrupulous parties to defraud creditors.




INVESTOPEDIA EXPLAINS 'Voluntary Conveyance'

Some municipalities in the U.S. use the voluntary conveyance method as an alternative to the standard tax foreclosure process to accelerate the development of abandoned or tax-delinquent properties. Voluntary conveyance can aid municipalities by saving them the expense of tax foreclosure and reducing urban blight, while benefiting property owners whose municipal liens may be discharged. However, the application of voluntary conveyance is limited by the requirement for clear title.

RELATED TERMS
  1. Foreclosure - FCL

    A situation in which a homeowner is unable to make principal ...
  2. Delinquent Mortgage

    A mortgage for which the borrower has failed to make payments ...
  3. Voluntary Foreclosure

    A voluntary foreclosure is a foreclosure proceeding that is initiated ...
  4. Clear Title

    Also known as "clean title," "just title," "good title" and "free ...
  5. Deed In Lieu Of Foreclosure

    A potential option taken by a mortgagor (a borrower) to avoid ...
  6. Forbearance

    A temporary postponement of mortgage payments.
Related Articles
  1. Foreclosure Opens Doors For Real Estate ...
    Home & Auto

    Foreclosure Opens Doors For Real Estate ...

  2. Short Sell Your Home To Avoid Foreclosure
    Options & Futures

    Short Sell Your Home To Avoid Foreclosure

  3. Avoiding Foreclosure Scams
    Personal Finance

    Avoiding Foreclosure Scams

  4. The Pitfalls Of Buying A Foreclosure ...
    Home & Auto

    The Pitfalls Of Buying A Foreclosure ...

comments powered by Disqus
Hot Definitions
  1. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  2. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  3. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  6. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
Trading Center