Myths to Foreclosure
Here are some common myths regarding foreclosures:
Myth – The banks wants your home
Far from the truth. The bank never wants your home. They want the money that they lent you with interest and many banks hate going through the foreclosure process because it is very expensive with the legal fees involved.
Myth – The bank won’t take my payments.
Banks will say that they won’t accept partial payments. If you and the bank can get together to find a solution on paying on the loan, more often times than not, you can have save your home by calling the lender and getting your loan worked out. The foreclosure process will stop as long as you make your payment on time.
Myth – Because I received my foreclosure noticed, I need to move out right away
Not true. You should stay in your home since foreclosure processes take a long time, usually in a lot of states. After a foreclosure finalizes, there will be an eviction hearing and you will then have to exit the property.
Myth – No bank will refinance me out of foreclosure
If you have enough equity and have a job, most lenders will refinance you with no issues and will pay off the old bank to stop the foreclosure process.
Myth – If I enter foreclosure, I can never buy again
Not true. Your credit score may go down by a lot, but you will be able to buy in about 4 to 7 years. If you try a short sale, you can bring that down to 3 years, usually.
Myth – A chapter 7 bankruptcy will stop the foreclosure
It will stop it, but only temporarily. Eventually you’ll need to do something else to keep your home from facing foreclosure.
Myth – I’m going to jail because I’m getting foreclosed on
You’ll lose your home but you won’t go to jail for failing to pay your mortgage
Myth – Once the foreclosure sale happens, you won’t get your house back
This can be true in some states, but there are states with a “redemption” period where you can keep the house if you can pay off the bank in full. But this is restricted within a limited time.
Myth – When there is a foreclosure, they will take all my belongings
You can keep your personal items but permanent attachments must stay with the house like light fixtures and the dishwasher.
Myth: The bank won’t make me pay their legal fees
Sometimes they may try. Check your mortgage documents.
