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Community spokesperson : After a recent surge of

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Senior Manager
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Joined: 07 Sep 2014
Posts: 482
Concentration: Finance, Marketing
Community spokesperson : After a recent surge of [#permalink]

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New post 04 Sep 2017, 01:49
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

71% (01:17) correct 29% (02:55) wrong based on 106 sessions

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JeeMat wrote:
I don't think it's D. The plan is to attract potential buyers. Who cares if they can't pay anymore after 2 years? The question doesnt ask or state anything about long-term effects. They'd be able to sell those houses today and thats all that matters for the question.

For the lack of other reasonable choices I'd choose E. I don't really like it because in my opinion, they could still sell the houses and it'd just take a little longer if the brokers are busy, but again i think that's the most reasonable one.


i think We have ignored this one word as a problem : FORECLOSURE which happens when bank/lender recover the loan by selling the property in case borrowers don't pay the debt.

To rectify this problem, purchase these vacant homes by offering potential buyers special mortgages with a low interest rate for the first two years. => so after two years, this will again start the cycle.

That's the problem in this plan because it is root of the problem itself. problem is : FORECLOSURE.

There are few mortgage brokers in the area, making it unlikely that there will be enough personnel to assist a rush of potential home buyers. :- even if there are few mortgage brokers who can assist buyers, lets say 10%, still there is nothing wrong with the plan because it is helping us with problem of FORECLOSURE.

Crime rates in the area have risen by 1% in the last year, making it less likely that potential buyers will be interested in moving to the area :- I think this also can be a potential weakener. But 1% less crime rate, and less likely => wording make it that it is not a major issue.
Community spokesperson : After a recent surge of   [#permalink] 04 Sep 2017, 01:49
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