Cwmc Module 14: Foreclosure Competency Test

18 Questions | By Lfeinstitute | Updated: Mar 20, 2022 | Attempts: 59

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This quiz is part of LFE Institute's CWMC (Certified Workplace Money Coaching) course. It will test your proficiency in the Foreclosure Module (Module 14) of the program. The questions are all multiple choice, and are designed to be a review of this Module. Let LFE know when you've successfully completed this test and are ready to begin the next Module. Correct answers required for passing grade: 15/18

Questions and Answers

1.

Which of the following are red flags for possible foreclosure scams? (check all that apply)
- A.
  
  Ads claiming to purchase homes to alleviate mortgage debt
- B.
  
  Offers to stop foreclosure immediately with a new government program
- C.
  
  Request for payment up front for foreclosure services
- D.
  
  Suggest exaggeration of income on application forms for loan approval to avoid foreclosure
2.

Which of the following would you NOT recommend as a valuable Web site to learn more about foreclosures?
- A.
  
  Http://www.foreclosureeducation.com/home
- B.
  
  Http://www.homedepot.com
- C.
  
  Http://ezinearticles.com/?Tips-For-Handling-Early-Signs-of-a-Foreclosure&id=129106
- D.
  
  Http://www.hud.gov/foreclosure
- E.
  
  Http://www.phfa.org/consumers/homeowners/alternatives.aspx
3.

Solutions to foreclosures are:
- A.
  
  Always easy
- B.
  
  An entitlement
- C.
  
  Possible
- D.
  
  Very rare
- E.
  
  Effortless
4.

In Module 14, TARP stands for:
- A.
  
  Tax Administration Reform Plan
- B.
  
  Taxpayer Arranged Responsibility Policy
- C.
  
  Troubled Asset Relief Program
- D.
  
  The Average Reasonable Person
- E.
  
  Treasury Allocation Recovery Process
5.

Which of these statements are NOT true regarding Foreclosure Auction Guides? (check all that apply)
- A.
  
  Buyers must be notified of possible maintenance problems or home defects
- B.
  
  Auction guide information is not specific or detailed
- C.
  
  Guides are intended to assist finding foreclosed homes or land
- D.
  
  These publications are usually free
- E.
  
  A buyer should ask for a written policy for returning the guide before purchasing
6.

Choose the answer that best completes this sentence:"Even if your house has decreased in value, your lender may accept a _________"
- A.
  
  Refund
- B.
  
  Boat loan
- C.
  
  Stock option
- D.
  
  Short sale
- E.
  
  Pool installation
7.

Common claims made by foreclosure scam artists include: (check all that apply)
- A.
  
  “We’ll stop your foreclosure”
- B.
  
  “We’ll save your home”
- C.
  
  “We guarantee to reduce your payments”
- D.
  
  “We’ll contact your lender”
- E.
  
  None of the above
8.

Which of these actions is NOT advised to avoid a foreclosure?
- A.
  
  Contact your lender immediately to explain your situation
- B.
  
  Negotiate a temporary reduction or suspension of your payments
- C.
  
  Ask to extend the term of the loan
- D.
  
  Send the key and your mortgage documents to the lender
- E.
  
  None of the above
9.

According to LFE guidelines, the maximum number of colors Money Coaches should use in the text of an e-mail is:
- A.
  
  1 color. Keep it simple.
- B.
  
  2 colors. One color for body text and one color to highlight certain words or phrases.
- C.
  
  3 colors. One color for body text and two colors to highlight certain words or phrases.
- D.
  
  4 colors. Two colors for body text and two colors to highlight certain words or phrases.
- E.
  
  5 colors. The text should be as colorful as possible to keep the reader interested.
10.

A Workplace Money Coach should:
- A.
  
  Give advice when the employee specifically asks for it
- B.
  
  Copy and paste text from the Internet into a response so that it is accurate and easy to read
- C.
  
  Report employee foreclosures or bankruptcies (as disclosed in an employee’s e-mail) to the HR Director immediately
- D.
  
  Do all of the above
- E.
  
  Do none of the above
11.

Which of the following helps to explain a real estate short sale? (check all that apply)
- A.
  
  It’s an alternative solution to avoid foreclosure
- B.
  
  It's a situation in which the bank accepts less than the remaining mortgage to pay off the loan
- C.
  
  It's a sale that must close within 45 days
- D.
  
  It's a sale that involves no more than two parties
- E.
  
  It's a sale of a single level home
12.

Which of the following applies to the Home Affordable Modification program? (check all that apply)
- A.
  
  Designed to reduce payments to more affordable levels
- B.
  
  Available so that all mortgage lenders can offer refinancing this year
- C.
  
  Only available to Freddie Mac and Fannie Mae-owned mortgages
- D.
  
  Borrowers can be past-due on their mortgage and still qualify
- E.
  
  Borrowers must be current on their mortgage to qualify
13.

Who is NOT a good source of help for a homeowner on the brink of foreclosure?
- A.
  
  Non-profit credit counselors
- B.
  
  Federal Housing Administration and HUD
- C.
  
  The lender
- D.
  
  The national Jumpstart Association
- E.
  
  A professional foreclosure attorney
14.

Which of the following are common foreclosure misconceptions? (check all that apply)
- A.
  
  When the bank forecloses on my house, they’ll also take all my furniture
- B.
  
  I have to pay off my mortgage to keep my home
- C.
  
  Once my house is sold under foreclosure, my debt is forgiven
- D.
  
  Only deadbeats lose their home to foreclosure
- E.
  
  None of the above
15.

The Relief Refinance Mortgage Program: (check all that apply)
- A.
  
  Is available to all mortgage lenders to offer for refinancing
- B.
  
  Is only available to Freddie Mac and Fannie Mae-owned mortgages
- C.
  
  Will reduce monthly payments by reducing the loan interest rate
- D.
  
  Is only available for owner-occupied homes
- E.
  
  Allows borrowers to refinance with a Loan-to-Value ratio up to 105%
16.

When an employee is struggling with mortgage payments, the best thing he/she can do is:
- A.
  
  Borrow money from 401(k)
- B.
  
  Contact his/her mortgage lender to review options
- C.
  
  Nothing. The problem might go away on its own.
- D.
  
  Take money out of child’s savings account
- E.
  
  Call a mortgage rescue company immediately
17.

Why do employers care if employees lose their homes to foreclosure? (check all that apply)
- A.
  
  It makes the company look bad
- B.
  
  It increases the high cost of Presenteeism
- C.
  
  It may affect the employee’s health
- D.
  
  Companies lose tax benefits if more than 10% of their employees’ homes are foreclosed
- E.
  
  None of the above
18.

A Money Coach should recommend an employee lose his/her home through foreclosure only if which of the following is true?
- A.
  
  The employee can’t make the mortgage payments
- B.
  
  The mortgage is more than the home is worth
- C.
  
  The employee just lost his/her job
- D.
  
  The house isn’t big enough for the employee's growing family
- E.
  
  None of the above. A Money Coach should never make recommendations or give advice.