Scituate MA Foreclosure Facts And Advice For Homeowners

Foreclosures are abundant and so are the myths on them. It is critical for current and future home owners to have accurate information. This blog covers Scituate MA foreclosure facts and advice for homeowners.

Misconceptions about Foreclosure

Stop Paying to Get Assistance

Home owners can request loan modification and other assistance programs prior to missing any loan payments. These programs assess your financial condition to identify eligibility.

There Are No AlternativesOptions After the Foreclosure Notice Is Issued

Lenders would rather avoid foreclosure. Even when foreclosure proceedings have started, lenders can still allow you to prevent foreclosure. A short sale is also possible prior to a completed foreclosure. Short sales involve having a buyer for your property and getting the lender to allow a sale for less than what is owed.

Foreclosures Happen Immediately After You Miss One Payment

The foreclosure notice is merely the first step in the process and it typically is not issued until you have missed several payments. It may take several months for a lender to complete the necessary process to evict you from a property. Even though you are not required to immediately move out, you should start preparing for it.

I Can Never Get Another Home Loan

Although a foreclosure is a deterrent for future lenders and dramatically reduce your credit rating, you may still be able to be able to get another mortgage in a few years. Use that time to rebuild your credit score. Also expect a larger required down payment and higher mortgage rate. This is how lenders will minimize their risk of lending to you.

The Bank Takes All of My Property

Furniture, clothes, and other personal belongings are still yours. Only items affixed to the property are part of the foreclosure. This includes carpeting, lighting, plumbing, etc. Think about what you would normally leave behind if you were selling the property and use that as a general guideline.

The debt is Forgiven After Foreclosure

After foreclosure, a residence may sell for less than the amount owed to the bank. You are legally responsible for that remaining amount. There may be ways for the bank to “forgive” the balance. Contact a local attorney to understand your options.