Finance
A Texas lender 'charges off' a non-performing loan. This means the lender has:
AForgiven the debt entirely
BWritten off the loan as a loss on their books, but the borrower's obligation may still exist✓ Correct
CTransferred the loan to TREC
DConverted the loan to equity in the property
Explanation
A loan charge-off means the lender has written the balance off their books as a loss for accounting purposes. However, the borrower's legal obligation to repay typically remains. The lender may sell the charged-off debt to a collection agency.
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