In 2008,foreclosures reached a record high.Which of the following is NOT a possible reason for foreclosures?
A) Many mortgages were initiated without a down payment.
B) Many mortgages were initiated on secondary and investment homes.
C) Some mortgages were adjustable rate mortgages which might have dramatically increased monthly payments for some.
D) Property values were increasing too fast.

Question

Quizplus · Accepted Answer

Property values increasing too fast would actually have the opposite effect and make it less likely for homes to go into foreclosure. Therefore, it is not a possible reason for foreclosures. A, B, and C are all possible reasons for foreclosures as they involve risky mortgage practices and changes in payment terms.

In 2008,foreclosures Reached a Record High