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1.
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.
2.
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.
3.
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.
4.
When negotiating with a lender, what option or options might you suggest?
Loan modifications and loan reinstatement are options in negotiating with your lender. Lenders would rather negotiate with you than foreclose on your home, and would consider several repayment options.
5.
How do the federal government programs that help homeowners facing foreclosure typically work?
They modify the mortgage loans. These programs modify the loans in various ways in order to reduce homeowners' monthly payments.