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Real Estate Foreclosures and Short Sales

This quiz is designed to test your knowledge about Real Estate Foreclosures and Short Sales.

15 Questions Published
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Questions

Question 1 Multiple Choice (Single Answer)

What is the process by which a lender takes possession of a property when the borrower defaults on their mortgage?

  1. Foreclosure
  2. Short Sale
  3. Deed-in-Lieu of Foreclosure
  4. Lis Pendens
Question 2 Multiple Choice (Single Answer)

What is a short sale?

  1. A sale of a property for less than the amount owed on the mortgage
  2. A sale of a property to a new owner who assumes the existing mortgage
  3. A sale of a property by the lender after a foreclosure
  4. A sale of a property by the borrower to avoid foreclosure
Question 3 Multiple Choice (Single Answer)

What are the advantages of a short sale for the borrower?

  1. The borrower can avoid foreclosure
  2. The borrower can get out of debt
  3. The borrower can improve their credit score
  4. All of the above
Question 4 Multiple Choice (Single Answer)

What are the disadvantages of a short sale for the borrower?

  1. The borrower may have to pay a deficiency judgment
  2. The borrower may have to pay taxes on the forgiven debt
  3. The borrower may have difficulty getting a new mortgage
  4. All of the above
Question 5 Multiple Choice (Single Answer)

What are the advantages of a short sale for the lender?

  1. The lender can avoid the costs of foreclosure
  2. The lender can get rid of a non-performing loan
  3. The lender can recoup some of the money owed on the mortgage
  4. All of the above
Question 6 Multiple Choice (Single Answer)

What are the disadvantages of a short sale for the lender?

  1. The lender may not get the full amount owed on the mortgage
  2. The lender may have to pay closing costs
  3. The lender may have to wait a long time to sell the property
  4. All of the above
Question 7 Multiple Choice (Single Answer)

What is a deed-in-lieu of foreclosure?

  1. A deed that is given to the lender by the borrower in lieu of foreclosure
  2. A deed that is given to the borrower by the lender after a foreclosure
  3. A deed that is given to a third party by the borrower and the lender
  4. None of the above
Question 8 Multiple Choice (Single Answer)

What are the advantages of a deed-in-lieu of foreclosure for the borrower?

  1. The borrower can avoid foreclosure
  2. The borrower can get out of debt
  3. The borrower can improve their credit score
  4. All of the above
Question 9 Multiple Choice (Single Answer)

What are the disadvantages of a deed-in-lieu of foreclosure for the borrower?

  1. The borrower may have to pay a deficiency judgment
  2. The borrower may have to pay taxes on the forgiven debt
  3. The borrower may have difficulty getting a new mortgage
  4. All of the above
Question 10 Multiple Choice (Single Answer)

What are the advantages of a deed-in-lieu of foreclosure for the lender?

  1. The lender can avoid the costs of foreclosure
  2. The lender can get rid of a non-performing loan
  3. The lender can recoup some of the money owed on the mortgage
  4. All of the above
Question 11 Multiple Choice (Single Answer)

What are the disadvantages of a deed-in-lieu of foreclosure for the lender?

  1. The lender may not get the full amount owed on the mortgage
  2. The lender may have to pay closing costs
  3. The lender may have to wait a long time to sell the property
  4. All of the above
Question 12 Multiple Choice (Single Answer)

What is a lis pendens?

  1. A notice that is filed with the court to indicate that a lawsuit has been filed
  2. A notice that is filed with the recorder's office to indicate that a property is being foreclosed on
  3. A notice that is filed with the lender to indicate that the borrower is in default
  4. None of the above
Question 13 Multiple Choice (Single Answer)

What is the purpose of a lis pendens?

  1. To give notice to potential buyers that the property is being foreclosed on
  2. To give notice to potential buyers that the property is being sold in a short sale
  3. To give notice to potential buyers that the property is being sold in a deed-in-lieu of foreclosure
  4. To give notice to potential buyers that the property is being sold in a bankruptcy sale
Question 14 Multiple Choice (Single Answer)

How long does a lis pendens last?

  1. Until the foreclosure sale is completed
  2. Until the short sale is completed
  3. Until the deed-in-lieu of foreclosure is recorded
  4. Until the bankruptcy sale is completed
Question 15 Multiple Choice (Single Answer)

What are the consequences of a lis pendens?

  1. The property cannot be sold or transferred
  2. The property cannot be refinanced
  3. The property cannot be rented
  4. All of the above
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