Question

________ is the difference between the market value of property and the amount owed on it

Answer 1

equity is the difference between the market value of property and the amount owed on it

Answer 2

Answer: basic security loss

Explanation: The basic security loss is the difference between the property's market value and the outstanding Agency debt on the property, including principal, and other recoverable costs. It is important for the Loan Servicer to consider the basic security loss in determining how to work with the borrower.