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1.
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.
2.
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.
3.
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.
4.
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.
5.
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.