If a Homeowner in Mortgage Distress Owes More Than the Value

question 14

Multiple Choice

If a homeowner in mortgage distress owes more than the value of the home,and is unable make the loan manageable by refinancing or modifying the mortgage,the next recourse often is a short sale of the property.All of the following statements are true regarding a short sale EXCEPT:

• A)Legal costs should be lower with a short sale than with foreclosure
• B)A short sale usually enables a better sale price and a faster sale than foreclosure
• C)A short sale is less damaging to the borrower's credit than a foreclosure,thereby enabling the borrower to be eligible for another mortgage loan sooner
• D)A short sale relieves the seller of any other outstanding obligations on the home,such as owner association fees or a second mortgage.

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Definitions:

Organizational Norms

The informal understandings that govern the behavior of members within an organization, establishing the expected standards of conduct.

Patriotic Soldier

A military personnel who deeply loves, supports, and defends their country with a strong sense of national loyalty and pride.

Internalization

Conformity to a social norm prompted by true acceptance of the beliefs, values, and attitudes that underlie the norm.

Internalization

The process of incorporating or integrating ideas, values, and beliefs into one's own worldview or organizational practices.