Which of the following is NOT a consequence of defaulting on a mortgage?

Defaulting on a mortgage can lead to several consequences, but an increased credit score is not one of them. In fact, defaulting on a mortgage typically results in significant negative effects on a borrower’s credit score. This is because a default is considered a serious delinquency by credit reporting agencies, indicating that the borrower has failed to make payments as agreed.

Conversely, the other options represent realities that could follow a mortgage default. The possibility of foreclosure arises when a borrower fails to meet their mortgage obligations, potentially resulting in the lender taking back the property. Loss of property equity is also a likely outcome, as defaulting can force a sale or foreclosure, meaning the homeowner may lose any financial investment they had in the property. Loan modification options, while they may provide some relief, are also a consideration for borrowers who are struggling and indicate that a default has occurred. Therefore, the correct choice highlights a scenario that does not align with the consequences of defaulting on a mortgage.