A Homeowner Who Owes More on His or Her Mortgage

question 33

Multiple Choice

A homeowner who owes more on his or her mortgage than the mortgaged property is worth is referred to as owning a home that is

• A)"sequestered."
• B)"underwater."
• C)"in the red."
• D)"in the black."

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Definitions:

Cash Quickly

A term referring to methods or strategies used to obtain liquid funds in a short period of time.

Present Value Factor

A number by which a future payment is multiplied to determine its present value.

Annuity

An economic scheme that delivers fixed periodic earnings to recipients, usually serving as financial support for those retired.

Payments

Transactions where a good or service is exchanged for monetary compensation.