Which of the Following Is NOT an Alternative to Foreclosure

question 34

Multiple Choice

Which of the following is NOT an alternative to foreclosure?

• A)Restructuring the mortgage loan
• B)Transfer of the mortgage to a new owner
• C)Redemption
• D)Prepackaged bankruptcy

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Definitions:

Status Quo Bias

The tendency most people have when making choices to select any option that is presented as the default (status quo) option. Explainable by prospect theory and loss aversion.

Behavioral Economics

A field of economics that examines how psychological, cognitive, emotional, cultural, and social factors affect economic decisions.

Utility

A measure of satisfaction or happiness that a consumer derives from consuming goods or services.

Disutility

The negative utility or dissatisfaction experienced by consumers from consuming a good or engaging in an activity.