In the article I share what I learned about Common Myths About Foreclosures.
- 1 Myth: The bank is eager to take over your house
- 2 Myth: If you have received a foreclosure notice, you have to immediately move out from your house
- 3 Myth: If you are in foreclosure, you are not eligible for refinance from any bank to get out of foreclosure
- 4 Myth: If you experience foreclosure, you will never be able to buy a house again
- 5 Myth: Everyone will be present for your home foreclosure auction
- 6 Myth: Chapter 7 bankruptcy would stop the foreclosure and save your house
- 7 Myth: Homeowners can suggest various innovative ideas for averting home foreclosure and the bank comply with the same
Myth: The bank is eager to take over your house
Truth: All the bank wants and is interested in – is its money; it never wishes to take over your house. They only want their money they lent, along with the interest on the same. In reality, banks really hate being a part of the foreclosure process and would go to any limit to work along with the homeowners to avert foreclosure.
However, very often the bank’s accommodating tendency is of no help when it comes to stopping the home from reaching the foreclosure stage. By avoiding the bank authorities or treating them with contempt as you think they “want” your house, you might only make the bank take over your house.
Myth: If you have received a foreclosure notice, you have to immediately move out from your house
Truth: Many states follow a very long foreclosure process, wherein even if you are unable to avoid foreclosure you still don’t have to move out from your house. Right after the foreclosure process you are expected to attend the eviction hearing. Sooner or later, you will be asked to move out of the house. This does not mean you have to hold on to the house till the very end. However, you should make sure you are able stay and fight back. You could be in for some luck, if you take timely action and don’t waste the available chances in stopping the house from reaching the foreclosure stage.
Myth: If you are in foreclosure, you are not eligible for refinance from any bank to get out of foreclosure
Truth: If you have sufficient equity in the house, approximately 60%-70%, many specialty lenders would refinance the house for paying off the old bank and averting foreclosure.
Myth: If you experience foreclosure, you will never be able to buy a house again
Truth: From a banking perspective, foreclosures are observed to be one of the worst entries on the credit report. Moreover, some banks might approve your loan immediately after a foreclosure. Steel yourself against high interest rates and large down payments. Very often terms of these loans thwart people from buying one more house. If time is on your side and you work hard towards rebuilding your credit you can easily approach a bank for finance, as if you never experienced foreclosure.
Myth: Everyone will be present for your home foreclosure auction
Truth: There are many instances where foreclosure sales are carried out “at” the pre-foreclosure property, but no one would be allowed unless they are invited.
Myth: Chapter 7 bankruptcy would stop the foreclosure and save your house
Truth: Chapter 7 bankruptcy would impede the home foreclosure only temporarily. If you are facing foreclosure, sooner or later you will have to carry out some preventive measures for keeping the house for a longer term.
Myth: Homeowners can suggest various innovative ideas for averting home foreclosure and the bank comply with the same
Truth: In many instances, various banks engage specific procedures and complex bureaucracies. Very often, these smart plans meet denial. Follow a specific plan by adhering to the given parameters and formats put down by the bank works for averting foreclosure. Opt for a professional consultation if needed.