Common Myths on Foreclosures

Common Myths on Foreclosures

MYTH: “My lender doesn’t care about me or my home, they want to foreclose on me!”


REALITY:  Lenders and banks are not in the business of owning property.  They do not want to foreclose on you because it shows up negatively in their books and costs them more money to foreclose on a property than it does to work with the homeowner and Realtor on a short sale.


MYTH: “I am just going to let the mortgage company take over my property.  I have no other options and at least I will not be responsible for any more payments.”


REALITY:  There are many options available to homeowners that are in distress.  A qualified real estate agent will be able to determine the best option for you.  The homeowner is not released from the debt when their property goes into foreclosure.  It is possible that the mortgage company will file a deficiency judgment against the homeowner for repayment of the mortgage that was not satisfied in a bank sale.


MYTH: “I have time.  I heard that it can take up to 12 months for lenders to catch up with you.”


REALITY:  While the period of time from when a homeowner misses a payment and the bank or lender files a complaint to pursue foreclosure can be lengthy, there is no guarantee that you will have that much time.  There are many different factors that contribute to the bank sale such as the bank or lender’s company policies and how old the mortgage is.  Therefore, time is of the essence!  The longer a homeowner waits to take action, the more difficult it will be for them to avoid foreclosure.  A trained real estate professional should be the first person you call to find out more on how to avoid this potential hardship.