Foreclosure Information: Nine Myths That Could Cost You Money & Time

You can find many myths about foreclosure. There are those that are based in fact but many are simply nonsense.

Which is why we hope to straighten out a few of these myths with some accurate foreclosure information that you can trust. So read on to find out what is true and what isn’t.

The Myth: The mortgage company wants to foreclose on my house.
The Facts: The mortgage company almost never wants your house, they want to be paid back with interest. As a matter of fact, lenders almost always going through the foreclosure process and will bend over backwards to negotiate with homeowners to avoid a foreclosure. There are times when the lender’s flexibility still does not do enough to stop the foreclosure. That doesn’t mean that the lender ?wants? your house.

The Myth: I got a notice of foreclosure; I have to move out now.
The Facts: Just about all states’ foreclosure processes are drawn out. Even if you are not able to stop foreclosure you are not required to move right away. Following a foreclosure you must go through an eviction hearing. If you didn’t leave, eventually you would be kicked out. Be sure you use the time to make other plans for housing or to discover a way to protect your house from foreclosure.

The Myth: If I get a chapter 7 bankruptcy it will stop foreclosure and will protect us from losing the home.
The Facts: A chapter 7 bankruptcy will stop the foreclosure on a temporary basis only. If you are looking at foreclosure, in the long run you need to do something else to retain your home permanently.

The Myth: If I just present a unique plan to get caught up with my loan and present it to the bank and they will support me.
The Facts: Lending institutions, in most cases, involve complicated bureaucracies and rigid methodologies. Usually the most ingenious plans were destined for rejection upon conception. Stick with a plan within formats and parameters the mortgage company works with everyday to avoid foreclosures. It is smart to get a foreclosure specialist who offers comprehensive foreclosure programs to assist you when dealing with a bank.

The Myth: I have to take every action I can to save my home and continue to live in it.
The Facts: There are times when a person needs to move on and begin again. Also there are cases where the owner just hates the house and does not have a desire to save it. There is more than one way to get out from under a loan without totally trashing your credit by going through a foreclosure or just walking away. The plan should be to research the best option to achieve the result you are after.

The Myth: When a judge hears my sad story she will not kick me out.
The Facts: A judge will follow the law regardless of your tale. It is possible you will get additional time, but you will just be postponing the foreclosure temporarily. You will eventually have to move out if you do not come to an agreement with the mortgage company.

The Myth: No one can help me in preventing my home foreclosure
The Facts: There are many methods and many specialist who are able to help you avoid foreclosure of your house. Loan-Modification-Masters.com is one such place to get help in dealing with a foreclosure.

The Myth: By filling a chapter 13 bankruptcy I will maintain possession of the house no matter what.
The Facts: If you file a chapter 13 bankruptcy it must be accepted by the judge. Also you are required make all the payments ordered by the judge or you will forfeit.

The Myth: The lender is not going to make me pay their legal fees for taking my home.
The Facts: Yes they will. Look at your loan documents, they made it very clear. Don’t expect it to be cheap: $2000-$5000 is not uncommon.

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