Janet is considering the purchase of a condo for $150,000 during a recession phase, 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 incur a:
A)neutral equity on her property.
B)reduced residual value of the property.
C)higher rent ratio.
D)foreclosure of her house.
E)fine from the local government.

Question

Quizplus · Accepted Answer

If Janet cannot make her mortgage payments on time, the lender has the right to foreclose on her house, meaning they can take ownership of the property and sell it to recover the loan amount.

Janet Is Considering the Purchase of a Condo for $150,000