Foreclosures are abundant and so is the misinformation on them. It is critical for current and future home owners to understand the facts. This blog covers Burlington MA foreclosure facts and advice for property owners.
Common Misinformation About Foreclosure
You Can Not Get Help Until You Stop Paying
Home owners can apply for loan modification and other assistance programs before missing any monthly payments. These programs assess your financial condition to figure out eligibility.
There Are No AlternativesOptions After the Foreclosure Notice Is Issued
Lenders take a bigger loss on foreclosure. Even when foreclosure proceedings have begun, lenders can still work out a solution to prevent foreclosure. A short sale is one solution prior to a finalized foreclosure. Short sales consist of finding a buyer for your property and getting the lender to allow a price below the amount owed.
You Must Move Out Right After the Foreclosure Notice
The foreclosure notice is only the first step in a lengthy process and it typically is not issued until you have missed several payments. It may take an extended period of time for a lender to get through the necessary process to evict you from a residence. Although you do not need to immediately leave your property, you should plan for it.
I Can Never Buy Another Property
Although a foreclosure impacts future lenders and severely drop your credit profile, you may still be able to get approved for another mortgage in the future. It is important to demonstrate good credit practices to increase your score during that time. Creditors may charge you a higher mortgage rate and request a larger down payment to minimize the risk of lending to you.
The Lender Takes All of My Belongings
Furniture, clothes, and other personal belongings are still yours. Only items attached to the property must remain. This includes flooring, light fixtures, plumbing, etc. Consider what you would usually leave behind if you were selling the property and use that as a general guideline.
I Do Not Owe Anything After Foreclosure
After foreclosure, a residence may sell for less than what owed to the bank. You are legally responsible for that balance. There may be ways for the bank to “charge-off” the balance. Consult with a local attorney for detailed options.
Burlington MA Foreclosure Facts And Advice For Property Owners
There are many other myths and facets of foreclosure beyond what is covered above. Procedures may vary from state to state as well. This article on Burlington MA foreclosure facts and advice for property owners is only a general overview. Be sure to get legal guidance if you are in danger of foreclosure, and do so before you miss any payments.