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.
A situation in which a homeowner is unable to make principal ...
A mortgage for which the borrower has failed to make payments ...
A voluntary foreclosure is a foreclosure proceeding that is initiated ...
Also known as "clean title," "just title," "good title" and "free ...
A potential option taken by a mortgagor (a borrower) to avoid ...
A temporary postponement of mortgage payments.