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A homeowner is behind on his home loan payments. Which of the following is NOT a method by which he might avoid foreclosure on his home?

a) Loan modification
b) Short sale
c) Deed in lieu of foreclosure
d) Escrow analysis

1 Answer

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Final answer:

An escrow analysis is not a method to avoid foreclosure; it's a review of the escrow account. Loan modification, short sales, and deeds in lieu are methods to avoid foreclosure. Economic changes and regulations can affect the loan market.

Step-by-step explanation:

The homeowner behind on his home loan payments has several methods to avoid foreclosure, including loan modification, short sale, and deed in lieu of foreclosure. An escrow analysis is not a method to avoid foreclosure; rather, it is a review of the escrow account to ensure that enough funds are being collected to pay taxes and insurance. When considering loan repayment, a borrower's history of late payments could signal a higher risk of default, making the loan less attractive to buyers. Changes in the financial market, such as increased home-buying age population, economic growth confidence, and favorable bank regulations, can lead to an increase in the quantity of loans made and received.

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