HUD CERTIFICATION ALL EXAMS CORRECT
ANSWERS AND QUESTIONS SURE A+
✔✔If the client decides to leave the home, which option would most likely require the
least amount of time?
A- Deed-in-lieu
B- Foreclosure
C- Short sale
D- Pre-foreclosure sale - ✔✔A- Deed-in-lieu
If the servicer cooperates, a deed-in-lieu will take the least amount of time. The
foreclosure process can vary from state to state and can take several months to several
years to complete. A short sale is "short" on the principal balance of the loan, though
the timeline for completion is typically not very short. Pre-foreclosure sale means selling
the property prior to foreclosure, which may or may not be a short sale.
Reference: Module 5.3 Disposition Options
Page Number 4 to 6
✔✔The client is also behind on her credit card debt and has only a few job prospects.
She is considering filing for bankruptcy but wants to keep her home. Which advice
should the housing counselor provide?
A- Suggest the client file for a Chapter 13 bankruptcy
B- Suggest the client file for a Chapter 7 bankruptcy
C- Provide the client with the name of a bankruptcy attorney
D- Explore loss mitigation options available - ✔✔D- Explore loss mitigation options
available
✔✔Which is a bankruptcy qualification that considers income and equity in assets to
determine if a client has the ability to repay part of the debt? - ✔✔Means test
✔✔The client was laid off from her job five months ago. Based on the information
provided, if the client had an FHA-insured mortgage which loss mitigation option
,would her servicer likely suggest first? - ✔✔Special Forbearance - Unemployment
Agreement
✔✔The client and her housing counselor request an FHA Special Forbearance-
Unemployment Agreement from the client's servicer. Which is a key feature of this type
of agreement?
A- The agreement will expire 60 days after she becomes employed.
B- The client will have to show surplus income over the minimum limit.
C- It will temporarily suspend and/or reduce the client's monthly mortgage payment.
D- The client will have to successfully complete a Trial Payment Plan. - ✔✔C- It will
temporarily suspend and/or reduce the client's monthly mortgage payment
✔✔For which loss mitigation option would this unemployed client be approved if she
has an FHA loan?
A- Standalone Partial Claim
B- Special Forbearance - Unemployment Agreement
C- FHA-HAMP Loan Modification
D- Freddie Mac Flex Modification - ✔✔B- Special Forbearance - Unemployment
Agreement
✔✔Because she has exhausted her reserves the client is concerned about how she will
find a new place to live should she not succeed in her goal of saving her home. Which
information should the housing counselor provide?
A- The client should stop making mortgage payments and save that money for
transition.
B- Most landlords are willing to provide lenient terms to someone who has just lost their
home through
foreclosure.
C- The client's state and/or servicer may have programs to assist with transition costs.
D- Most servicers will allow homeowners 30 days from the date of eviction to transition.
- ✔✔C- The client's state and/or servicer may have programs to assist with transition
cos
✔✔The client finds out her landlord has been granted a writ of possession. Which
advice should the housing
counselor provide to the client?
A- Stay in the unit until client receives a notice to pay or quit
B- Respond to the court within five days to stop the eviction
C- Prepare to move immediately
D- Appeal to the landlord for an extension - ✔✔C- Prepare to move immediately
, NOTE: Seventy-two hours after the landlord is granted a writ of possession, they will
have the right to change the locks and have a forcible eviction with the help of law
enforcement. By the time the client receives a writ of possession, she would have
already received a pay or quit notice and a notice to vacate. It is highly unlikely the
landlord will give an extension after being granted a writ of possession.
✔✔Which document must be filed and issued to the tenant before the landlord can
forcibly evict or change locks? - ✔✔Writ of possession
✔✔Which term most accurately describes a loan that is three months late in payment?
A- Imminent default
B- Foreclosure
C- Delinquent
D- Default - ✔✔D- Default
✔✔Where is this client in the foreclosure timeline if she lives in a non-judicial state and
is 3 months behind in her mortgage?
A- The client is delinquent.
B- The client is in default.
C- The client is in foreclosure.
D- The client is within the grace period. - ✔✔B- The client is in default.
✔✔Which notice must the servicer send the client once the mortgage is delinquent and
before 45 days past due?
A- Notice of default
B- Notice of foreclosure
C- Notice of intent to accelerate the loan
D- Notice of homeownership counseling availability - ✔✔A- Notice of default
NOTE: Mortgage servicer guidelines require that the servicer must send the borrower a
written notice to contact the servicer before 45 days of delinquency and provide
information about housing counseling. Notice of intent or default cannot be filed as early
as 45 days. Servicers cannot make a first notice or filing for foreclosure
until the borrower is more than 120 days delinquent.
✔✔Which additional information does the housing counselor need to help the client
determine her retention options?
A- Notice of foreclosure
B- Mortgage type
C- Total debt balance
D- Emergency budget - ✔✔B- Mortgage type
ANSWERS AND QUESTIONS SURE A+
✔✔If the client decides to leave the home, which option would most likely require the
least amount of time?
A- Deed-in-lieu
B- Foreclosure
C- Short sale
D- Pre-foreclosure sale - ✔✔A- Deed-in-lieu
If the servicer cooperates, a deed-in-lieu will take the least amount of time. The
foreclosure process can vary from state to state and can take several months to several
years to complete. A short sale is "short" on the principal balance of the loan, though
the timeline for completion is typically not very short. Pre-foreclosure sale means selling
the property prior to foreclosure, which may or may not be a short sale.
Reference: Module 5.3 Disposition Options
Page Number 4 to 6
✔✔The client is also behind on her credit card debt and has only a few job prospects.
She is considering filing for bankruptcy but wants to keep her home. Which advice
should the housing counselor provide?
A- Suggest the client file for a Chapter 13 bankruptcy
B- Suggest the client file for a Chapter 7 bankruptcy
C- Provide the client with the name of a bankruptcy attorney
D- Explore loss mitigation options available - ✔✔D- Explore loss mitigation options
available
✔✔Which is a bankruptcy qualification that considers income and equity in assets to
determine if a client has the ability to repay part of the debt? - ✔✔Means test
✔✔The client was laid off from her job five months ago. Based on the information
provided, if the client had an FHA-insured mortgage which loss mitigation option
,would her servicer likely suggest first? - ✔✔Special Forbearance - Unemployment
Agreement
✔✔The client and her housing counselor request an FHA Special Forbearance-
Unemployment Agreement from the client's servicer. Which is a key feature of this type
of agreement?
A- The agreement will expire 60 days after she becomes employed.
B- The client will have to show surplus income over the minimum limit.
C- It will temporarily suspend and/or reduce the client's monthly mortgage payment.
D- The client will have to successfully complete a Trial Payment Plan. - ✔✔C- It will
temporarily suspend and/or reduce the client's monthly mortgage payment
✔✔For which loss mitigation option would this unemployed client be approved if she
has an FHA loan?
A- Standalone Partial Claim
B- Special Forbearance - Unemployment Agreement
C- FHA-HAMP Loan Modification
D- Freddie Mac Flex Modification - ✔✔B- Special Forbearance - Unemployment
Agreement
✔✔Because she has exhausted her reserves the client is concerned about how she will
find a new place to live should she not succeed in her goal of saving her home. Which
information should the housing counselor provide?
A- The client should stop making mortgage payments and save that money for
transition.
B- Most landlords are willing to provide lenient terms to someone who has just lost their
home through
foreclosure.
C- The client's state and/or servicer may have programs to assist with transition costs.
D- Most servicers will allow homeowners 30 days from the date of eviction to transition.
- ✔✔C- The client's state and/or servicer may have programs to assist with transition
cos
✔✔The client finds out her landlord has been granted a writ of possession. Which
advice should the housing
counselor provide to the client?
A- Stay in the unit until client receives a notice to pay or quit
B- Respond to the court within five days to stop the eviction
C- Prepare to move immediately
D- Appeal to the landlord for an extension - ✔✔C- Prepare to move immediately
, NOTE: Seventy-two hours after the landlord is granted a writ of possession, they will
have the right to change the locks and have a forcible eviction with the help of law
enforcement. By the time the client receives a writ of possession, she would have
already received a pay or quit notice and a notice to vacate. It is highly unlikely the
landlord will give an extension after being granted a writ of possession.
✔✔Which document must be filed and issued to the tenant before the landlord can
forcibly evict or change locks? - ✔✔Writ of possession
✔✔Which term most accurately describes a loan that is three months late in payment?
A- Imminent default
B- Foreclosure
C- Delinquent
D- Default - ✔✔D- Default
✔✔Where is this client in the foreclosure timeline if she lives in a non-judicial state and
is 3 months behind in her mortgage?
A- The client is delinquent.
B- The client is in default.
C- The client is in foreclosure.
D- The client is within the grace period. - ✔✔B- The client is in default.
✔✔Which notice must the servicer send the client once the mortgage is delinquent and
before 45 days past due?
A- Notice of default
B- Notice of foreclosure
C- Notice of intent to accelerate the loan
D- Notice of homeownership counseling availability - ✔✔A- Notice of default
NOTE: Mortgage servicer guidelines require that the servicer must send the borrower a
written notice to contact the servicer before 45 days of delinquency and provide
information about housing counseling. Notice of intent or default cannot be filed as early
as 45 days. Servicers cannot make a first notice or filing for foreclosure
until the borrower is more than 120 days delinquent.
✔✔Which additional information does the housing counselor need to help the client
determine her retention options?
A- Notice of foreclosure
B- Mortgage type
C- Total debt balance
D- Emergency budget - ✔✔B- Mortgage type
