Question

Janet is considering the purchase of a condo for $150,000, partly financed by a mortgage. She is due to retire in a few years. If she cannot make her mortgage payments on time, she is bound to suffer a _________.

A) negative equity on her property
B) reduced residual value of the property
C) higher rent ratio
D) foreclosure of her house

Answer 1

The best answer is"D"

foreclosure of her house

Step-by-step explanation:

Foreclosure is a lawful procedure in which a bank endeavors to recover a credit from a borrower who has quit making installments to the moneylender by forcing the sale of the whatever was used as the collateral for the loan.

Answer 2

D) foreclosure of her house

Step-by-step explanation:

A foreclosure is a judicial procedure by which a property is repossessed by a lender from a borrower that is not able to pay his/her monthly payments. In order for a foreclosure to take place, the house or condo must have been used as collateral to a mortgage, so when the borrower fails with payments, the property is foreclosed.