Quiz: Don't Take My House!

Staff

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About This Quiz

The high number of foreclosures these days hasn't made the process any easier to understand. If you find yourself struggling to make your mortgage payments, you may be on the brink of losing your home. But before you do anything drastic like walking away from it altogether, make sure you fully understand the process and your rights. Test your knowledge of the foreclosure process in our 'Don't Take My House!' quiz.

True or False: Communicating with your lender is one of the best things you can do to avoid foreclosure.

Many people think lenders are out to get them, but lenders want to do everything in their power to help you avoid foreclosure.

True or False: It's best to hire someone to speak to your lender on your behalf.

You don't need to pay anyone to talk to your lender on your behalf. In fact, many foreclosure rescue scams ask homeowners to pay for totally unnecessary negotiation services.

If you're having trouble making your mortgage payments temporarily, which of the following would help you avoid foreclosure?

Special forbearance allows a temporary reduction or suspension of your mortgage payment during short-term financial crises.

True or False: If you leave your home before you're kicked out, you may be liable for any damage that occurs.

You should never abandon your home unless instructed to leave by your bank because you could be required to pay for any damages to the property once you leave.

Which of the following should you be wary of in the foreclosure process?

Foreclosure scams are everywhere. So always make sure you know what you're signing, especially if it's a contract with a third party that relates your mortgage.

True or False: Going through foreclosure doesn't have any affect on your credit score.

If your home ends up in foreclosure, your credit score will be affected drastically, and can go down between 200 and 300 points. And it could take it as many as seven years to recover.

True or False: Once your lender contacts a lawyer, a housing counselor can no longer help you.

Even after the bank's lawyer is involved, you can seek helpful advice from a housing counselor.

Communication is key to saving your home. If you don't understand some kind of paperwork, which of the following should you NEVER do?

Foreclosure scammers count on homeowners not reading contracts. You should always understand everything you sign. So if you don't understand it, don't sign it.

If you're having trouble making your payments, you should call your lender immediately and provide them with what information?

You should contact your lender immediately and give them as much information as possible. There are many programs in place and adjustments that can be made -- either permanently or temporarily depending on your situation -- to help you make your payments and keep your home.

True or False: You may buy more time in the process if you ignore your mail and claim you were unaware of the foreclosure notices.

It is very important to open, read and understand every piece of mail your lender sends you. Ignoring the problem won't make it go away.

True of False: Foreclosure laws are the same in every state.

Foreclosure laws and timelines vary by state, so you should educate yourself on your state's particulars by visiting your state's government housing office.

Which of the following is a temporary option some lenders might offer to save your home from foreclosure?

A special forbearance -- usually a temporary suspension in payments -- is an option that some lenders might offer to help homeowners avoid foreclosure.

What FHA program involves a one-time loan to help bring your mortgage current?

A partial claim is an interest-free loan from the FHA to help cover your missed payments.

As a last resort to avoid foreclosure, you could be eligible for relocation expenses if you and your lender agree to what?

A deed-in-lieu lets your voluntarily turn your deed over to the bank to avoid foreclosure. You'll lose your home but you could walk away with relocation expenses.

True or False: Before you agree to anything that reduces your debt amount, you should contact a tax adviser.

You should definitely consult with a tax adviser about any type of forgiven debt because it could have serious consequences for your taxes.

Which of the following options will save your credit, but not your home?

When you've come to the conclusion that you cannot save your home and you're facing the possibility of foreclosure, a short sale is the best option when it comes to salvaging your credit score.

Your home is in danger of foreclosure after four months of delinquent payments, but it is not actually in foreclosure until what happens?

Even though you are delinquent four months on your payments, your home is not officially in foreclosure until a sheriff's or public trustee's sale date is set.

True or False: Foreclosures cost lenders money, too.

Lenders want to help you avoid foreclosure because they lose money in the process as well. According to the Joint Economic Committee, developing a plan to help you stay in your home costs about $1,500 compared to a whopping $227,000 combined cost to you (the homeowner), the lender and the government if your home goes into foreclosure.

Selling your home at fair market value is better than losing your home all together. Which of the following allows you to sell your home to avoid foreclosure?

A pre-foreclosure sale, also known as a short sale, allows homeowners to sell their home at current market value and use that money to satisfy their mortgage. Since the bank would lose money if the house goes into foreclosure, lenders usually allow the total of the mortgage to be forgiven with the sale total, even if it's less than the total mortgage due.

Which of the following provides debt management and credit and foreclosure counseling to help homeowners manage their finances and prevent foreclosure?

HOPE NOW includes mortgage servicers, investors and counselors that help as many homeowners as possible prevent foreclosure and stay in their homes.

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