Quiz: Test Your Short Sale Knowledge
Are you up-to-speed on the new short sale procedures, rules and paper work which must be used under the government's new Making Home Affordable program? Here are six simple questions to test your basic knowledge.
Homeowners, if your agent can't answer all of these simple questions correctly, find an agent who can.
1. When an owner is "underwater" and in default on the home loan, a short sale can be attempted at anytime before foreclosure.
- True
- False
False. There is now only ONE point during the loss mitigation process when a short sale will even be considered.
2. Who sets the list price and listing term for a short sale property?
- The homeowner
- The servicer's loss mitigator
- The government
- The Listing Agent
The servicer's loss mitigator now determines if and when a short sale can be attempted, sets the list price, and listing term.
3. The homeowner must document a "valid hardship" before the servicer/lender will consider a short sale.
- True
- False
True. The homeowner must document a valid hardship before a loan modification or short sale can be attempted.
4. Under the short sale rules in effect now, the servicer and lender have agreed to pay a "reasonable and customary" commission to the listing REALTOR® (but not more than 6%) and have also agreed not to try to re-negotiate the listing agreement fee when a contract is negotiated.
- True
- False
True. Yes, really!
5. The government will help clear junior liens on a property to help a short sale be successful.
- True
- False
True. The government will contribute up to $1 for every $2 paid by the servicer/lender, up to $1,000.
6. Only a small percentage of home loans are covered by the Making Home Affordable Program.
- True, about 15% of loans fall under the program
- False, almost 90% of loans fall under the program
False. Almost 90% of all loans in the country are covered by the program.
If you didn't score 100%, sign up for our Short Sale Success Course.
Register now to take the course online, or plan to attend the special Short Sale Summit 2009 event in Houston (TX), October 7 and 8.
