There can be some false information about foreclosures. It is helpful for current and future home owners to know what is fact and what is fiction. This article offers Bennington foreclosure myths and information for homeowners.
Common Mistakes
Only Delinquent Home Owners Get Help
Home owners may apply for loan modification and other aid before missing any loan payments. These services assess your personal financial situation to figure out eligibility.
There Is Nothing You Can Do After Receiving a Foreclosure Notice
Mortgage companies would rather avoid foreclosure. Even if foreclosure processes begin, mortgage companies may continue to work out a solution to prevent foreclosure. A short sale is one solution prior to a completed foreclosure. They involve finding a buyer for your home and asking the lender to approve a price lower than what is owed.
You Must Move Out Right After the Foreclosure Notice
The foreclosure notice is merely the first step in a lengthy process and it ordinarily is not issued until you are a few months late on your mortgage. It will take an extended period of time for a mortgage company to get through the required process to ultimately evict you from a residence. Even though you are not required to immediately vacate the property, attempt to prepare for it.
I Will Never Be Able to Purchase Another Property
Even though a foreclosure can be considered a negative by future lenders and dramatically declines your credit rating, you may be able to be able to get another mortgage in several years. It is important to demonstrate good credit practices to rebuild your score in the meantime. Also expect a larger down payment percentage and higher mortgage rate. This is how creditors will offset the risk of lending to you.
The Mortgage Company Takes Everything I Own
Furniture, clothes, and other personal items are still yours. Only items affixed to the property are part of the foreclosure. This includes flooring, lighting, and plumbing. Consider what you would normally leave if you were selling a property and use that as a general guideline.
There Is No Financial Impact of Foreclosure
The mortgage company will sell your property but may recover everything owed to them. You are actually responsible for that remaining amount. There are ways for the mortgage company to “charge-off” the balance. Get advice from a local attorney for a list of options.
Bennington Foreclosure Myths And Information For Homeowners
There is a long list of other myths and facets of foreclosure beyond what is discussed above. Procedures can also vary from state to state. This article on Bennington foreclosure myths and information for homeowners is only a generic introduction and should not be considered legal advice. Be sure to receive professional advice if you are facing foreclosure, and think about doing so before being delinquent.
