Buying Homes on the Cheap: How Much Do You Know About Foreclosures?
It seems today like you can't drive through a neighborhood -- regardless what part of the country you're in -- without seeing at least a few bank-owned properties for sale. But while it's never good news when people can't afford to stay in their homes, foreclosures aren't all bad. They also represent a chance for buyers and investors to score great deals on properties. Take our quiz to see how much you know about foreclosures, real estate and the home-buying process!
How many homes in the U.S. were undergoing foreclosure at the start of 2012?
one in 23,514
one in 8,765
one in 563
Which state had the highest rate of foreclosures as of late 2011?
How many homes underwent foreclosure in 2011?
Who is the largest owner of foreclosed properties in the U.S.?
J.P. Morgan Chase
How much should you plan to spend on owner's title insurance when buying a foreclosed property?
about 0.5 percent of the purchase price
about 5 percent of the purchase price
about 15 percent of the purchase price
What name is given to foreclosed properties owned by banks?
real estate owned (REO)
real estate investment (REI)
real estate foreclosure (REF)
What's the best way to find out about liens against a foreclosed property before you buy?
read the contract
a title search
ask the former owner
How many buyers manage to persuade banks to fix problems found during the inspection of a foreclosed property?
True or false: Banks are required to disclose any problems with a foreclosed property prior to sale.
It depends on the state.
How much do experts suggest that buyers budget for repairs when buying a foreclosed home?
5 percent of the purchase price
10 percent of the purchase price
25 percent of the purchase price
What term describes a pre-foreclosure sale where the bank accepts an offer below the value of the loan?
What's the minimum price that a lender can accept for an FHA-backed foreclosure property?
88 percent of list price
75 percent of list price
66 percent of list price
What percentage of home sales did foreclosed properties represent during 2011?
What was the average purchase price for conventional, non-foreclosed homes in 2011?
How much did the average distressed, or “fixer-upper,” foreclosure sell for in 2011?
How much did the average REO, or bank-owned foreclosure, sell for in 2011?
What was the average cost of a short sale property in 2011?
What percentage of home sales in 2011 were short sales?
How much of a discount do buyers get on average when purchasing a foreclosure?
Prior to the housing crisis of the early 21st century, what percentage of annual home sales did foreclosures represent each year?