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

Multiple Choice

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) loan-to-value ratio .
D) foreclosure of her house.
E) fine from the local government.