Top 5 Foreclosure Myths
What are the Top 5 Foreclosure Myths?
These top 5 foreclosure myths are comprised of a mix of myths many homeowners commonly associate with the foreclosure process. It can be beneficial to learn about the top 5 foreclosure myths in order to have the best opportunity at making a well-informed decision with respect to foreclosure.
Top 5 Foreclosure Myths Debunked
Here are the top 5 foreclosure myths and some brief explanations behind them:
- 1. My credit score is going to be damaged forever now that I’ve been through foreclosure
While it is true that a foreclosure can be damaging to credit scores, the damage is by no means permanent. It can be possible to begin repairing credit scores relatively soon after the foreclosure process has ended. Homeowners looking to rebuild their credit after foreclosure should consider rebuilding credit scores with a secured credit card.
- 2. There is no way to stop the foreclosure process after it has started
Homeowners commonly believe it is an impossible task to stop the foreclosure process without paying the entire unpaid mortgage balance. This is far from the truth since there are a number of ways to avoid foreclosure without having to come up with all of the money for the delinquent mortgage payments. Homeowners should consider speaking with an experienced foreclosure defense attorney who can advise individuals on such foreclosure defense options as deed in lieu of foreclosure, short sale, loan modification, mortgage forbearance and more.
- 3. There is no way to stop the collection calls once the foreclosure process has started
Collection calls can be an especially difficult thing to deal with once the foreclosure process has begun. Some homeowners can become overwhelmed and choose not to answer their phone calls at all fearing it may be their mortgage lender. It is important to remember, all homeowners are protected under the Fair Debt Collection Practices Act (FDCPA). Homeowners may write a letter to their mortgage lender requesting a stop to all collection calls and the mortgage lender is required by law to stop collection call efforts.
- 4. The bank only wants to take my home
Sometimes mortgage lenders may come across as insensitive towards a homeowner in foreclosure’s plight, but the truth is, many lenders prefer alternatives to foreclosure. Between the money lost on unpaid mortgage balances and the high costs associated with following through with the foreclosure process, alternatives to foreclosure are oftentimes much more cost-effective than following through with a foreclosure sale. Homeowners are advised to reach out to their mortgage lenders as early as possible during the foreclosure process to negotiate an alternative to foreclosure.
- 5. Foreclosure happens immediately
After receiving a foreclosure notice, it is easy to feel as if your home may be ripped out right from under you. Foreclosure notices are typically written in such a way as to instill a sense of urgency. In reality, the foreclosure process often takes many months to complete from start to finish. In some states the foreclosure process may take less than 6 months, but often times the foreclosure process may take between 12-26 months for a homeowner to lose their home.