Foreclosure can be one of the most disheartening events a homeowner can experience. However, many foreclosures could have easily been prevented if homeowners knew the truth behind some of the top foreclosure myths that circulate the housing industry. We’re going to dive into the top 5 major foreclosure myths that will help you clearly understand what foreclosure is all about and what it is not.
This myth takes the number one spot. While it is understandable that your credit score will drop if your home is foreclosed, the possibility of buying a new home is not out of reach to homeowners that have gone through foreclosure.
In our next article, we will share with you 10 Credit Score Improvement Strategies to help boost your credit score.
This one while it may seem like a no-brainer myth, you will be surprised how many people hear this type of advice from family members, friends and even some misinformed professionals. Stopping your mortgage payments will only worsen your situation.
If you completely stop your mortgage payments, here’s an overview of the foreclosure process you can expect to experience.
Here we have another myth that definitely has made its way around to the ears of many homeowners.
However, if you find yourself in need of a loan modification because you’re not able to make your mortgage payments are you are in the foreclosure process, then it is recommended you get legal representation so you don’t get lost in the loan modification system. There are many foreclosure defense and loan modification firms that exist and we recommend checking out their loan modification case results and testimonials so you can see what people are really saying about their experience with those firms.
This is another BIG foreclosure myth that can end up causing you more grief than relief.
When all else fails, the next call you make should be to a foreclosure defense firm. Remember, to a lender you are just the homeowner, they realize you might not be aware of your legal rights as a homeowner. They may and have been known to take advantage of homeowners by using these exact stall tactics. Instead of cutting all communication and hoping they forgot about you, you need to take a step in the legal representation direction. You’ll see just how quickly they will respond once you have an attorney working with you.
Unfortunately, many unscrupulous individuals are trying to take advantage of homeowners in distress by offering unrealistic expectations when it comes to loan modifications.
Homeowners are not in this fight alone, there are legitimate firms that represent homeowners and can help them with their loan modification. Homeowners should do their homework and search for local firms that have experience working with their lenders and have some documented case results from past successful loan modifications. As the homeowner, it will be your responsibility to provide the documentation necessary for the firm to proceed with your case and any delay on your part will only cause a delay in the loan modification process of your home.
While the shifts in the economy have caused many housing related stresses, you can rest assured there are many options for you if you are experiencing difficulties with your mortgage. Don’t hesitate to ask as many questions as you need from a legal firm so you can understand your role in the foreclosure defense and loan modification process. Many foreclosure defense firms offer interactive question and answer options on their websites and in social media sites like Facebook, where their attorneys respond to your inquiries to get you moving in the right direction. Remember, it’s your home and you have the right to fight for it!