12-20.A theory that states that no borrower with substantial positive equity would default,even if unable to make the monthly payments,is:

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Equity theory posits that individuals seek fairness in their interactions and relationships, ensuring that the distribution of resources is equitable. In the context of borrowing and lending, this theory would suggest that a borrower with substantial positive equity would perceive it as unfair or unjust to default on their obligations, even in the face of financial difficulties, because they have a significant vested interest in the outcome. This aligns with the principle that individuals are motivated to maintain equitable relationships and avoid actions that would disrupt this balance, such as defaulting on a loan when they have the means (equity) to support their obligations.

12-20A Theory That States That No Borrower with Substantial Positive