Finance
Vermont's 'land contract forfeit' in a contract for deed means if the buyer defaults:
AThe buyer keeps the property
BThe seller may declare a forfeiture and reclaim the property, with the buyer losing their equity interest and payments✓ Correct
CThe lender takes over the contract
DThe court automatically reschedules payments
Explanation
Under a land installment contract (contract for deed), if the buyer defaults after a forfeiture clause is triggered, the seller may reclaim the property and retain all payments made — a remedy that can be harsh for buyers with significant equity.
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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).
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
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.
Math Concepts
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