Section 10, Unit 1: Types of Defaults

When borrowers fail to pay property taxes, allow their property to go into disrepair, or ______, they could face loan default.

Miss scheduled mortgage payments

Two examples of loan adjustments or modifications are recasting and ______.

Moratorium (or forbearance)

Two areas of vulnerability for the lender occur when homeowners insurance is allowed to lapse. What are they?

Property damage and judgment liens

Two examples of loan adjustments or modifications are moratorium and ______.

Recasting

Which of the following could be a concern for a lender regarding property condition?

A roof that's missing shingles

When borrowers miss scheduled mortgage payments, fail to pay property taxes, or ______, they could face loan default.

Allow the property to go into disrepair

Alternatives to foreclosure include deed in lieu of foreclosure, short sale, or ______.

Bankruptcy

Rather than be foreclosed on, Jarod turned his deed over to his bank. This is called a ______.

Deed in lieu

A homeowner may go into default on a home loan due to ______.

Failure to meet loan terms and conditions

Jasmine has a mortgage on her property, but allows her homeowner's insurance to lapse. Which of these is a possible consequence of this action?

The lender can put Jasmine's loan in default.