Janet is considering the purchase of a condo for $150,000 during a recession phase,partly financed by a mortgage.She is due to retire in a few years.If she cannot make her mortgage payments on time,she is bound to incur a ____________.
A)neutral equity on her property
B)reduced residual value of the property
C)higher rent ratio
D)foreclosure of her house

Question

Janet is considering the purchase of a condo for $150,000 during a recession phase,partly financed by a mortgage.She is due to retire in a few years.If she cannot make her mortgage payments on time,she is bound to incur a ____________. ​
A)neutral equity on her property
B)reduced residual value of the property
C)higher rent ratio
D)foreclosure of her house

Quizplus · Accepted Answer

If Janet cannot make her mortgage payments on time, she is likely to face foreclosure of her house, which means the lender seizes the property and sells it to recover the amount owed. It is essential to consider one's financial stability and ability to pay off the mortgage before investing in real estate.

Janet Is Considering the Purchase of a Condo for $150,000