There are a number of myths about foreclosure. Some are based in fact but many are simply foolishness.
Which is why we hope to clear up some of these myths with some foreclosure information that you can count on. So keep reading to find out what is myth and what is fact.
The Myth: The mortgage company wants to get my house.
The Facts: The bank rarely wants your house, what they want is the money they lent you paid back with interest. As a matter of fact, mortgage companies almost always despise going through the foreclosure process and will bend over backwards to work with homeowners to avoid a foreclosure. Often the lender’s flexibility just does not go far enough in stopping the foreclosure. That does not mean that the bank “wants” your house.
The Myth: I was sent a foreclosure notice; I have to move out now.
The Facts: Most states’ foreclosure processes are drawn out. Even if you fail to prevent foreclosure you are not required to move immediately. Following a foreclosure you are required to go through an eviction hearing. If you did not move out, eventually you would be physically removed. Be sure you use the time to make other arrangements for housing or to find a way to protect your house from foreclosure.
The Myth: A chapter 7 bankruptcy stops foreclosure and will protect us from losing the house.
The Facts: When you are granted a chapter 7 bankruptcy it will prevent the foreclosure only for a while. If you are facing foreclosure, eventually you have to do something else to retain your home as the owner.
The Myth: I can come up with a unique idea to get caught up on my loan and show it to the lender and they will work with me.
The Facts: Banking institutions usually involve complicated bureaucracies and specific methodologies. Often the smartest plans were destined for rejection when conceived. Stick to a plan within formats and parameters the bank deals with everyday to halt foreclosures. It is smart to get a foreclosure specialist who offers comprehensive foreclosure programs to assist you when dealing with a lender.
The Myth: I have to do everything I am able to save my home and continue to live in it.
The Facts: Sometimes people should move on and start over. Also there are situations where the owner simply dislikes the house and does not have a desire to save it. There is more than one way to get out of a mortgage without ruining your credit by going through a foreclosure or just walking away. The plan should be to find the best option to achieve the result you want.
The Myth: When a judge hears my sad tale they will not kick me out.
The Facts: A judge will follow the law without regard to your story. You may be granted more time, however you will only be stopping the action temporarily. Eventually you will be removed if you do not come to an agreement with the lender.
The Myth: There is no one who can help me in preventing my home foreclosure
The Facts: Many ways exist and there are many professionals who can assist you avoid foreclosure of your house. Loan-Modification-Masters.com is one such place to get assistance in dealing with a foreclosure.
The Myth: When I file a chapter 13 bankruptcy I will maintain possession of the home automatically.
The Facts: When you file a chapter 13 bankruptcy it must be accepted by the court. Not only that but you have to make all the payments assigned by the court or you will forfeit.
The Myth: The lender is not going to make me pay their legal expenses for foreclosing on my home.
The Facts: Yes they will. Look at your loan contract, it is quite clear. It is not going to be cheap: $2000-$5000 is common.
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