Which action can help avoid foreclosure?

Giving the lender a deed in lieu of foreclosure can indeed help avoid foreclosure. This process involves the borrower voluntarily transferring ownership of the property back to the lender as a way to settle the mortgage debt. By opting for a deed in lieu of foreclosure, the borrower typically avoids the lengthy and damaging process of foreclosure, which can significantly impact credit scores and finances.

This option can also be beneficial for both parties: for the lender, it saves time and costs associated with the foreclosure process; for the borrower, it provides a faster resolution and may lessen the impact on their credit. Additionally, lenders may sometimes accept this form of settlement without pursuing a full foreclosure, which could ultimately be more favorable for the borrower in terms of financial and emotional stress.

Other options, such as filing for bankruptcy, can complicate the situation and are not specifically aimed at avoiding foreclosure; they change the legal framework of debts but don’t necessarily resolve the underlying mortgage obligation. Negotiating with the buyer is not relevant in the context of avoiding foreclosure, as it suggests involving a third party rather than addressing the borrower's direct relationship with the lender. Ignoring mortgage payments would inevitably lead to foreclosure, marking the opposite of a beneficial action.