Understanding Foreclosure and Your Alternatives Quiz

You've done your research and are well on your way to becoming informed about your options if you are struggling to pay your mortgage. Now it's time to test your knowledge. You may even learn something new.

1

Loan servicers benefit when a home goes into foreclosure because they can take back ownership of the mortgaged property and sell it to pay off the loan.

False. Loan servicers do not benefit when a home goes into foreclosure. In fact, loan servicers typically lose money in the foreclosure process.

question 1/5

2

If you experience a change in your financial situation and think that you might fall behind on your mortgage payments, what is your best course of action?

Call your loan servicer right away. The sooner you contact your loan servicer to explore your options, the more alternatives may be available to you.

question 2/5

3

With a __________, your loan servicer may be able to restructure your mortgage by adjusting your interest rate, changing the loan type, or even extending the number of years you have on your loan.

If you are struggling or can't make your mortgage payments, your loan servicer may be able to offer you a loan modification.

question 3/5

4

What is it called when a loan servicer agrees to let you sell your home for less than is owed on the mortgage?

A short sale maybe be a good option to exit gracefully from your home if you are behind on your mortgage payments, want or need to leave your home, and do not have the funds to pay the difference between the net proceeds from the sale of your home and the mortgage.

question 4/5

5

People who have their home foreclosed upon are not able to purchase a home in the future.

False. While it will take time and effort to restore your credit, it is still possible to achieve homeownership again.

question 5/5

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Good job! You have a solid understanding of foreclosure and the alternatives available to you. If you are struggling to make your mortgage payments reach out to your loan servicer as soon as possible to discuss your options.

You’re off to a good start. Consider learning more about options to stay in your home or leave it gracefully. If you are struggling to make your mortgage payments reach out to your loan servicer as soon as possible to discuss your options. Contact your loan servicer as soon as possible to discuss your options.

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