Which of the Following Was the Result in the Case

question 47

Multiple Choice

Which of the following was the result in the Case Opener in which the plaintiffs claimed that a mortgage foreclosure was wrongful because the foreclosure proceedings did not reveal the true secured party who had purchased the plaintiffs' loan from the original lender?

• A) That the foreclosure was wrongful because the proper secured party was not identified.
• B) That the foreclosure was wrongful because the loan should never have been transferred in the first place.
• C) That the defendant rightfully foreclosed because the plaintiffs were in default on the loan and had no right to know the identity of the true secured party.
• D) That the defendant rightfully foreclosed because the party who instituted foreclosure proceedings had the right to service the loan.
• E) That while the identity of the secured party should have been disclosed initially in foreclosure documents, the plaintiffs were not prejudiced by that omission; and the correct secured party could be substituted in the proceedings.

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Definitions:

Management Fees

Fees paid to managers for operating investment funds or managing assets.

Unrealised Profit

Profit that has been earned but not yet received in cash or recorded in the financial statements, often resulting from intra-company transactions.

Mark-up

The amount added to the cost price of goods to cover overhead and profit, determining the selling price.

Deferred Tax Asset

Financial accounting that recognizes reduced income tax in the future due to deductible temporary differences and carryforwards.