Finance
Under the NJ Homeowner's Bill of Rights (related to foreclosure reform), a borrower facing foreclosure must receive notice from the lender of:
AOnly the final auction date
BThe availability of housing counseling and loss mitigation options, including potential loan modifications or forbearance✓ Correct
COnly the outstanding balance
DNothing additional beyond the complaint
Explanation
NJ's foreclosure reform legislation requires lenders to provide homeowners with information about available housing counseling resources and loss mitigation options (loan modification, forbearance, deed in lieu) as alternatives to foreclosure.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Math Concepts
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