During a recession,the value of a homeowner's house falls significantly below the amount of debt associated with the home.Which of these entities is harmed as a result?
A) the homeowner only
B) the homeowner's bank
C) the homeowner's neighbors
D) the homeowner,the homeowner's bank,and the homeowner's neighbors

Question

Quizplus · Accepted Answer

All three entities are harmed as a result of the recession. The homeowner is at risk of foreclosure and losing the value of their investment. The homeowner's bank may experience losses if the homeowner defaults on their mortgage payments. The homeowner's neighbors may also experience a decrease in property values if there are a large number of foreclosures in the area.

During a Recession,the Value of a Homeowner's House Falls Significantly