A borrower in Ohio receives a foreclosure complaint from their lender. Before responding, the borrower's attorney advises exploring loss mitigation options. Under Ohio foreclosure practice, common loss mitigation alternatives include all of the following EXCEPT:
Correct Answer
B) Automatic loan forgiveness after 90 days of non-payment
Automatic loan forgiveness after 90 days of non-payment is not a loss mitigation option. There is no automatic forgiveness provision in Ohio or federal mortgage law. All loss mitigation options require negotiation and agreement between the borrower and lender.
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Related Topics & Key Terms
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Related Concepts
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
More Oh Financing Closing Questions
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