How much do you really know about the process of foreclosure?

Answer the following True/False questions to find out.  Score 9 points for each correct answer. 

The correct answers appear on the page entitled "Quiz Answers" at the left.  Good luck.

1.	As a general rule, foreclosed homes sell for less than their market value.

2.	If you bid on a foreclosed property at an auction, you also may be bidding on tax liens and other debt accrued by the prior homeowners.

3.	The housing boom masked the high number of homeowners who’ve struggled with paying their subprime loans — and these homeowners may now be at high risk of foreclosure.

4.	Homeowners who always pay their mortgage on time don’t need to worry about foreclosed homes in their neighborhood.

5.	Homeowners can sidestep foreclosure by transferring the title of their home to a foreclosure rescue company for a year or two.

6.	To purchase a HUD home (a home that’s in possession of the U.S. Department of Housing and Urban Development) you do not need to hold any special licenses or qualifications.

 

7.	Reading the public notices at your local county courthouse — including bankruptcy claims and death certificates — is not an effective method of locating foreclosed properties.

 

8.	Once a homeowner defaults on three mortgage payments, the home automatically goes into foreclosure.

 

9.	In many states, owners of foreclosed homes can reclaim their property — even after someone else has already bought it — by paying off the loan along with any interest, taxes, and penalties.

 

10.	Lenders stand to benefit when homeowners foreclose.

 

11.	Once a bank takes possession of a foreclosed home, the previous owner is free of all financial obligations.