About This QuizThis foreclosure quiz could keep you out of the red. Test yourself with this foreclosure quiz.
Nationwide, approximately how many households received a foreclosure notice in 2008?
1 in 88
1 in 101
1 in 54
At least 861,664 – that's 1 in 54 -- homes were foreclosed on in 2008, according to RealtyTrac figures.
What is RealtyTrac?
A real estate site exclusively for lenders and bank owners.
A massive online database of foreclosed or below-market-value properties.
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.
A Web site that allows you to track your home's value in real-time.
What does the term "underwater" mean?
You owe more on your mortgage than your home is worth.
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.
You have missed one or more mortgage payments, so foreclosure proceedings can technically begin.
"Underwater" homeowners have abandoned their foreclosed homes and are often not able to be contacted by their lenders.
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?
Contact your lender.
Most lenders are willing to work with you and have various payment options available. Just ask!
Talk to your financial adviser or the Federal Housing Authority.
Either of the above.
None of the above.
Which of the below terms might you need to know if you have temporary problems meeting your mortgage payments?
All of the above.
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?
When your lender agrees to change the terms of your mortgage to make it more affordable.
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.
When your lender agrees to suspend your payments temporarily.
When your home is eligible for natural disaster relief.
What is a "redemption period"?
The 30 days after a missed mortgage payment in which you can pay without penalty.
The period of time after your home has been sold at a foreclosure sale and you may be able to reclaim it.
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.
A grace period given by Freddie Mae and Freddie Mac.