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1.
When faced with possible foreclosure, what is the best way to handle negotiating with your lender?
You should contact your lender as soon as you realize you'll have a problem, ideally before you miss a payment. Sooner is better than later because if you wait too long, the lender might insist on foreclosure.
2.
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.
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.
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.
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.