What Is the Name of the Legislation That Helps Homeowners

question 35

Multiple Choice

What is the name of the legislation that helps homeowners avoid foreclosure by offering certain guarantees when refinancing a mortgage?

• A) Mortgage Forgiveness Debt Relief Act
• B) Truth in Lending Act
• C) House Refinancing and Protection Act
• D) Foreclosure and Debt Prevention Act

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Definitions:

Subordination Agreements

Legal documents that alter the priority of financial claims, making one party's claim rank behind another's in the event of a bankruptcy or liquidation.

Pro Rata

A Latin term that means "in proportion," often used to describe a method of allocating amounts or shares among participants according to their entitlement or contribution.

Chapter 11

A provision under the U.S. Bankruptcy Code that allows businesses to reorganize and restructure their debts while continuing operations.

Plan of Reorganization

A detailed proposal for restructuring a company's finances and operations, typically during bankruptcy proceedings.