When a Borrower Decides to Stop Making Payments on an Existing

question 33

Multiple Choice

When a borrower decides to stop making payments on an existing mortgage loan despite having the ability to make payments (typically when the home has lost value) , this is more commonly referred to as a(n) :

• A) Equity redemption
• B) Statutory redemption
• C) Strategic default
• D) Reverse mortgage

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Definitions:

Decision-Making Process

The cognitive and logical sequence of steps by which individuals select among options and take action.

Communication Improvement

Communication improvement involves enhancing the effectiveness and efficiency of conveying information and understanding between individuals or groups.

Reciprocal Goal

A mutual agreement or shared aim between two or more parties, particularly in a counseling or therapeutic context, to work towards a common objective.

Interrupting

The act of stopping a process or activity temporarily or permanently, often used in communication as a method to clarify or redirect conversation.