You can find many myths about foreclosure. There are those that are based in fact however many are just foolishness.
Which is why we hope to clear up some of these myths with some foreclosure information that you can trust. So keep reading to find out what is true and what isn’t.
The Myth: The bank wants to foreclose on my house.
The Facts: The mortgage company rarely wants to foreclose on your home, they want the money they lent you paid back with interest. In fact, lenders usually hate going through the foreclosure process and will bend over backwards to negotiate with homeowners to prevent a foreclosure. Sometimes the mortgage company’s flexibility still doesn’t do enough to stop the foreclosure. That doesn’t mean that the bank “wants” your house.
The Myth: I was sent a notice of foreclosure; Now I have to move out.
The Facts: Just about all states’ foreclosure processes are drawn out. Even if you aren’t able to prevent foreclosure you do not have to move immediately. After a foreclosure you must go through an eviction hearing. If you did not move out, eventually you would be kicked out. You can use the time to make other plans for housing or to discover a way to save your house from foreclosure.
The Myth: If I get a chapter 7 bankruptcy it will stop foreclosure and will protect me from losing the home.
The Facts: A chapter 7 bankruptcy will stop your foreclosure temporarily. If you are looking at foreclosure, in the long run you need to take additional action to keep the house as the owner.
The Myth: I can present a unique plan to get current with my mortgage and show it to the mortgage company and they will support me.
The Facts: Banking institutions usually involve complicated bureaucracies and specific methodologies. Often the smartest plans were destined for refusal when conceived. Stick to a plan within formats and parameters the lender works with day-in-day-out to halt foreclosures. It is smart to get a foreclosure specialist who offers comprehensive scam free foreclosure programs to help you when dealing with a lender.
The Myth: I must take every action I can to save my house and continue to live in it.
The Facts: Sometimes people should move on and start over. Also there are situations where the owner simply hates the house and does not have a desire to save it. There is more than one way to get out from under a mortgage without ruining your credit by allowing a foreclosure or just walking away. The plan should be to find the least damaging option to get the result you want.
The Myth: When a judge hears my sob story she is not going to kick me out.
The Facts: A judge is going to follow the law regardless of your story. You may be granted more time, but you will just be stopping the action temporarily. Eventually you will have to move out if you do not work things out with the mortgage company.
The Myth: There is no one who can help me in preventing my house foreclosure
The Facts: There are many methods and many professionals who are able to help you stop foreclosure of your house. Loan-Modification-Masters.com is one such place to get assistance in dealing with a foreclosure.
The Myth: By filling a chapter 13 bankruptcy I will maintain possession of my home no matter what.
The Facts: When you file a chapter 13 bankruptcy it must be accepted by the judge. Not only that but you must make all the payments ordered by the court or you will forfeit.
The Myth: The lender is not going to make me cover their legal fees for foreclosing on my house.
The Facts: Yes they will. Review your mortgage contract, they made it quite clear. Don’t expect it to be cheap: $2000-$5000 is common.
Mail this post