With all the information swarming around on the Internet about foreclosure, it is hard to figure out what is accurate and what is just made up. Listening to the wrong information or following bad advice can make you lose your house faster than you can say foreclosure. Below I’m going take some of the top inaccurate information I see floating around the Internet and try to clear up the mixed messages.
• The banks don’t care if you’re in foreclosure and won’t do anything to help you out.
This is defiantly inaccurate information; the banks do not want to see you in foreclosure. This may seem hard to believe, since they are the ones serving you the foreclosure notice, but it actually really hurts a bank financially every time they foreclose on a home. The banks will be closer to going bankrupt themselves, if they keep having to foreclose on people. Usually if you speak to your bank before pre foreclosure stages, they will do anything possible to help you.
• Getting a foreclosure notice means you have to move out immediately.
Depending on what state you live in you may have a very long time before the foreclosure is finalized. This can give you several months or more to find an affordable housing situation. Talk to a local foreclosure lawyer and see what laws pertain to your state. Keep focused though, if you are not able to improve your situation, you will eventually have to move, so get out there and start seeing what options are available to you.
• Banks won’t refinance your mortgage to help you avoid foreclosure.
This is not necessarily true; it all depends on the amount of equity you have built into the home. The longer you have lived there; the better chances that the banks can help you with a home equity loan or refinance. With a second mortgage, if it’s affordable, you can pay off your mortgage arrears and get out of foreclosure.
• Filing bankruptcy will save you from foreclosure.
Filing bankruptcy is not a simple process it can take months for a discharge and with the new laws it’s not quite so easy. A chapter 7 bankruptcy can temporarily help you avoid foreclosure, but it is not a long term solution. A chapter 13 will help you keep your home and structure a legal repayment plan, but it may not be affordable. You will want to get an opinion from a bankruptcy attorney to make sure you know all your options.
• You can’t afford the mortgage; you have been foreclosed on, now it is the banks problem.
If there is a deficiency you may still owe the difference plus any interest even though you no longer own the home. Just because you are in foreclosure, it doesn’t mean you can just walk away. You need to do whatever is possible to prevent foreclosure, even if it doesn’t mean keeping your home.
• You came up with all the money you needed to pay the bank back and save your home, but the foreclosure is in place, so it is too late.
This isn’t so in most states, if you can pay back all your past due amount and bring the mortgage current, you can stop the foreclosure. Remember the banks do not want to foreclose on you, if you have the money to pay them, tell them immediately. In most cases, if you can afford the payment now and you can show some sort of down payment, they will help you reinstate your loan.
• Once your house has been foreclosed on, the bank has the right to keep all your stuff inside.
The rule of thumb is, if you can carry it away it is all yours. Personal property belongs to you, if it is attached to house, it should stay behind.
• There is nobody that will actually help you stop the foreclosure.
There are plenty of good companies out there that can help you stop the foreclosure and save your home. Our site provides tons of information and advice and we don’t charge anything, so if you think you can’t find help, it’s because you’re not looking in the right places.
Hopefully some questions got answered out there and some of the foreclosure rumors floating around got cleared up. If you’re facing foreclosure, the best thing you can do is seek professional help immediately and explore your options, don’t wait for the last minute, it will be too late.
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