Massachusetts Real Estate License Practice Test

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Study for the Massachusetts Real Estate License Test. Prepare with multiple choice questions and explanations. Ace your exam with comprehensive practice!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is a consequence of defaulting on a mortgage while still having it in your name?

You lose all rights to the property
You remain responsible for the mortgage payments
Your credit score is unaffected
The bank will release you from liability

The correct answer is: You remain responsible for the mortgage payments

When a homeowner defaults on a mortgage, they still remain responsible for the mortgage payments, even if they are not able to make those payments. This means that the obligation to pay the remaining balance of the loan continues to exist in the homeowner's name. The lender can pursue legal action to collect the debt or initiate foreclosure proceedings to recover the owed amount, further emphasizing the borrower's ongoing liability. In such situations, the homeowner might face serious repercussions, like a credit score decrease and potential legal actions from the lender. The assumption here is that those financial responsibilities do not simply vanish upon default, highlighting the importance of understanding contractual obligations in real estate transactions.