When evaluating foreclosure, do we look at past due amount or balance?

When evaluating foreclosure, do we look at past due amount or balance?

• A. Current balance
• B. Past due amount
• C. Balance
• D. Total payments

Answer: (C)

The key idea is the amount still owed on the loan—the outstanding balance. In foreclosure discussions, you need to know what remains to be paid to satisfy the loan, which is the current balance. That balance includes principal plus any accrued interest, fees, and other charges that are not yet paid. The past due amount is only the portion of the balance that is behind, not the total obligation. Total payments are what has already been paid and aren’t the figure you owe now. So the balance best represents the amount due in order to bring the loan current or payoff the loan.

The key idea is the amount still owed on the loan—the outstanding balance. In foreclosure discussions, you need to know what remains to be paid to satisfy the loan, which is the current balance. That balance includes principal plus any accrued interest, fees, and other charges that are not yet paid. The past due amount is only the portion of the balance that is behind, not the total obligation. Total payments are what has already been paid and aren’t the figure you owe now. So the balance best represents the amount due in order to bring the loan current or payoff the loan.