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Paul owns his own home, which is financed with Green Forest Home Loans. Paul has been paying his mortgage for four years but is concerned about his ability to continue making payments as he has recently lost his job. Paul wants to avoid a foreclosure and knows his house has appreciated significantly in value in the past couple years, but ideally would like to keep his home rather than selling it. Paul has no idea when he will get a new job but is optimistic it would be within the next three months. Although several of the following options may be available to Paul, which one is most ideal?

a. Workout Agreement.
b. Short Sale.
c. Default.
d. Forbearance.

User Roozbubu
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1 Answer

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Answer: (A.) Workout Agreement

Explanation: A workout agreement is a negotiated arrangement between a borrower and a lender to modify the existing terms of a mortgage. This can involve adjusting interest rates, extending the loan term, or finding other ways to make the payments more manageable. It's often a proactive and collaborative approach to address financial challenges and avoid foreclosure.
User Manav Chhibber
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