Reed Lending sends Natalie Perry a formal document stating that the loan is in default and must be cured or foreclosure steps will continue. What document has been sent?
Correct Answer
B) Notice of default
Notice of default is correct because the facts match a formal notice stating that the borrower is in default and that foreclosure may follow if the default is not cured. That is the best description of the relationship, right, or legal concept tested here.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
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