The Process in Which the Lender Sues the Borrower to Prove

question 186

Multiple Choice

The process in which the lender sues the borrower to prove default and asks the court to order the sale of real estate property to pay the mortgage debt is called

• A)preforeclosure.
• B)foreclosure.
• C)repossession.
• D)default.

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Definitions:

Asset/Liability Method

A method used in accounting to adjust the books for tax purposes, balancing the future tax benefits of assets against the future tax obligations of liabilities.

Accelerated Cost Recovery

A method of depreciation used for tax purposes that allows for higher deductions in the early years of an asset's life.

Straight-Line Depreciation

Straight-Line Depreciation is a method where the cost of a tangible asset is reduced evenly over its useful life.

Deferred Tax Income Tax

A tax liability or asset that arises due to temporary differences between the financial reporting and tax bases of assets and liabilities.