A failed North Carolina plan cut the payment 8 percent to 35 percent of household income. Does the resulting payment meet the income-percentage condition for that exception to the state foreclosure pause?
Correct Answer
C) Not within that limb: the result had to be under 31 percent of income
The limb requires both that the plan reduced the monthly payment by six percent from the scheduled payment and that it resulted in a monthly payment of principal, interest, taxes and insurance of less than 31 percent of the borrower household income. Other choices: both conditions must hold; the figure is 31 percent rather than 43; and a later change in income is not the measure. Source: 04 NCAC 03M .0703(a)(1)(B)
Why This Is the Correct Answer
The limb requires both that the plan reduced the monthly payment by six percent from the scheduled payment and that it resulted in a monthly payment of principal, interest, taxes and insurance of less than 31 percent of the borrower household income. Other choices: both conditions must hold; the figure is 31 percent rather than 43; and a later change in income is not the measure. Source: 04 NCAC 03M .0703(a)(1)(B)
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