In: Accounting
2. How might a notice of default and foreclosure actually benefit a debtor who is behind on payments?
3. Should the federal government regulate the advertising of real property and mortgages on the Internet to protect consumers from potential fraud? Why or why not? If so, what kind of regulations would be appropriate, and how might they be enforced?
In this case when such notice is issued, borrower/debtor benefits by preventing damage to his / her credit ratings. The lender will claim only that property and there is no effect in credit ratings of the debtor. Other debtors are also benefitted as creditors will lend more as the number of default payments gets reduced and loan/ credit is available to debtors at cheaper rates.