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1.
Why would a homeowner facing foreclosure try to sell their home before the lender forecloses?
If the house has appreciated in value, a homeowner might consider selling it, paying off the mortgage, and buying a house that is more affordable. This also assures that a foreclosure is not reported to credit bureaus.
2.
Federal programs for homeowners facing foreclosure are available to all homeowners, regardless of their situation.
False. There are many requirements that homeowners must meet, some of them quite demanding.
3.
Forbearance is the negotiated agreement for you to make reduced payments, or no payments, on your mortgage for an agreed-upon period of time.
True. A lender would usually require that you make up the difference at a later time. If you are expecting a bonus or other extra cash, this might be an option for you.
4.
In mortgage talk, a "short sale" means that a homeowner sells the house to avoid foreclosure, and the lender agrees to accept the sale proceeds even if they're less than the loan amount.
True. Unfortunately, lenders may be reluctant to agree to a short sale.
5.
With home foreclosures, how does an "automatic stay" work?
An automatic stay legally stops the foreclosure process until the lender has the stay lifted. The homeowner is allowed to remain in the home until the case is resolved or the stay is lifted.