Housing Flashcards
Foreclosed homes made up ____% of sales in Sept 2016, while short sales were just ____%.
3%
1%
Distressed and short sales made up about ______% to _____% of all sales in 2012.
33% to 50%
What is the median age of first time home-buyers?
36
In a foreclosure, the ______ assumes ownership of the property and ______ the borrower.
lender
evicts
When a borrower consistently fails to make mortgage payments, the property is _________ upon.
Foreclosed
A _______ is often used as an alternative to ______ because it _________________ for both the creditor and borrower.
Short sale
mitigates additional fees and costs for both the creditor and borrower.
When does a foreclosure used?
When the borrower defaults on payments
When is a short sale used?
When the borrower is unable to make mortgage payments, owes more than the home’s current worth, and the lender agrees to the short sale.
Foreclosure: Method of sale?
Auctioned at trustee sale
Short sale: Method of sale?
Realtor
Forclosure: Impact on credit score and credit history?
Score drops 200 - 400 points.
Remains on report for 7 years.
Short sale: Impact on credit score and credit history?
Drop 50 - 150 points.
Listed on credit report if the credit reports the debt reduction to credit reporting agencies.
Who initiates a foreclosure?
The lender
Who initiates a short sale?
the homeowner
Foreclosure: restrictions of future home purchases?
Eligible to buy in 5 years with restrictions, or 7 years with no restrictions
