The Time Between When a Homeowner Is in Default on a Mortgage

question 143

Multiple Choice

The time between when a homeowner is in default on a mortgage and when the lender has filed a formal notice of foreclosure is called

• A)preforeclosure.
• B)the foreclosure auction period.
• C)the short sale window.
• D)the underwater period.

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Definitions:

Dividends Declared

The portion of a company's earnings that is approved by the board of directors to be distributed to shareholders.

Retained Earnings

The portion of net income that is not distributed to shareholders and is instead reinvested in the business.

Dividends In Arrears

Dividends on preferred stock that have not been paid in the scheduled time but are owed to preferred shareholders.

Cumulative Preferred Shares

Cumulative Preferred Shares are a type of preferred stock where dividends accumulate if not paid out, ensuring shareholders are paid past dividends before common shareholders.