Foreclosure Quiz

Staff

Nationwide, approximately how many households received a foreclosure notice in 2008?

At least 861,664 – that's 1 in 54 -- homes were foreclosed on in 2008, according to RealtyTrac figures.

What is RealtyTrac?

You may hear about RealtyTrac in the news quite often these days, as it has one of the largest foreclosure databases in the U.S. The numbers you see on its site today, however, might not be perfectly up-to-date. There are still plenty of foreclosures from last year to be processed.

What does the term "underwater" mean?

Underwater means you owe more on your home than it is worth. Let's say you borrowed $200,000 and put no down payment on your home, only to find that its value declined over a period of time. You would then be underwater on your mortgage.

Which U.S. state was hardest hit by foreclosures in 2008?

All three topped the list, according to CNN Money statistics published on Jan. 15, 2009, but Nevada had the unfortunate No. 1 spot, with 7 percent of homes receiving foreclosure filings.

Think you're going to miss a payment? Which of the below is the best course of action?

Most lenders are willing to work with you and have various payment options available. Just ask!

Which of the below terms might you need to know if you have temporary problems meeting your mortgage payments?

All of the above are correct, but there are different definitions for each option. Reinstatement is when a lender agrees to accept the total sum owed by a specific date. Forbearance is when a lender agrees to reduce or suspend payments for a period of time. It is often combined with reinstatement. Repayment plans are available to homeowners who agree to larger monthly payments until they are "caught up."

What is mortgage modification?

The correct answer is A. Answer B is the definition of forbearance. For C, the Federal Housing Authority does give help in the case of natural disaster and has free counselors available, but it does not do mortgage modifications in the traditional sense.

What is a "redemption period"?

The correct answer is B! Even if your home has been sold at a foreclosure sale, you can reclaim it. You will need to pay the outstanding mortgage balance and all costs incurred during the foreclosure process.

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About This Quiz

This foreclosure quiz could keep you out of the red. Test yourself with this foreclosure quiz.

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