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CRCM Exam - Question 303


On foreclosure, which of the following loans is subject to the reporting requirements for foreclosed and abandoned property?

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Correct Answer: C

The reporting requirements for foreclosed and abandoned property apply to loans secured by real property, such as a residence. A loan made to purchase a residence and secured by the residence falls under these reporting requirements due to the involvement of real property. Loans secured by personal property, like a car or a computer, do not meet the criteria because they do not involve real property. Similarly, an unsecured loan does not fall under these requirements.

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Cam22Option: C
Mar 18, 2024

Reporting requirements for foreclosed and abandoned property specifically apply to loans secured by real property. When a lender forecloses on such a property, the event is reportable because it involves the acquisition of real property through foreclosure, which has tax implications for both the lender and the borrower. Option A, involving a loan secured by a car, and Option D, involving a loan secured by a home computer, do not meet the criteria for reporting foreclosed and abandoned property because they involve personal property, not real property. Option B, an unsecured loan for purchasing a computer used in the borrower's business, also does not meet the criteria because it is unsecured and does not involve real property. Therefore, Option C, a loan made to purchase a residence and secured by the residence, is subject to reporting requirements in the event of foreclosure or abandonment because it involves real property.