Question

Zander's bank agreed to a loan modification on his principal residence that resulted in a cancellation...

Zander's bank agreed to a loan modification on his principal residence that resulted in a cancellation of debt of debt of $20,00, and enabled him to keep his home. Which of the following is he mostly likely to qualify for?

a. insolvency

b. bankruptcy

c. qualified real property indebtedness

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Answer #1

C) Qualfied real property indebtedness

Explanation:

Insolvency - Insolvency is a state of being unable to pay the money owed, by a person or company on time.

Bankruptcy - Bankruptcy is a legal proceedings involving business or persons that is unable to pay off their outanding debt.

Qualified real property indebtedness - When the principal amount of a homeowner’s mortgage debt is partially or fully forgiven through a short sale, loan modification or otherwise

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