When a Borrower Defaults on the Payment Requirements of a Loan

question 13

Multiple Choice

When a borrower defaults on the payment requirements of a loan, there are several options that the lender has at its disposal. When the lender allows the borrower simply to convey the property to the lender rather than pursue a court supervised process of terminating all of the borrower's claims of ownership of the property, this is commonly referred to as:

• A) Bankruptcy
• B) Foreclosure
• C) Deed in lieu of foreclosure
• D) Equity right of redemption

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Definitions:

Comorbidity

The concurrent occurrence of multiple diseases or medical conditions within the same patient.

Personality Disorders

A group of mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating from those accepted by the individual's culture.

Maladaptive Efforts

Behavior strategies or patterns that adversely affect a person's ability to adapt to situations or stress, often preventing proper or healthy responses.

Anxiety

The state of being nervous, fretful, or uneasy due to an event whose outcome is uncertain.