About Foreclosure

What is foreclosure?

Foreclosure is a legal action used by a mortgage company to recover any money from a customer when the customer does not pay his or her debt in accordance with the mortgage agreement. In other words, it’s the legal remedy used by a mortgage company to assume ownership of a property when the required loan payments are not made. Foreclosure obliterates otherwise good credit.

How does foreclosure happen? 

Although the actual process varies from state to state, foreclosure revolves around a homeowner’s inability to keep up with monthly mortgage payments. The farther behind the homeowner gets, the closer to foreclosure the homeowner becomes.

Is anyone exempt from foreclosure?

No. Everyone with a mortgage is subject to foreclosure, should non-payment become an issue.   

Common Myths

MYTH: My mortgage company would rather foreclose on my home than keep me in it.

The mortgage company sustains an average loss of about $58,000 when foreclosure occurs (TowerGroup study). They are in the business of providing mortgages – not owning or selling homes – and would always prefer to keep you in your home. By calling the Homeowner’s HOPE Hotline™ at 888-995-HOPE, we’ll help you work with your mortgage company to pay back your loan and stay out of foreclosure.

MYTH: Foreclosure is an uncommon problem – I’m all alone in this.

Foreclosure is a challenge faced by millions of Americans every year from all walks of life. Rich, poor, young, old – the list is as diverse as society itself. It’s nice to know there’s one place you can turn to for caring, non-judgmental advice if you find yourself struggling with your mortgage: 888-995-HOPE. We’ll be with you every step of the way.

MYTH: I’ve only missed one payment – I can likely catch up.

The most important thing to remember when playing catch-up with your mortgage is you owe any delinquent payments plus the current month’s payment. So, if you’re a month behind, you actually owe two payments – last month’s and this month’s. By calling 888-995-HOPE right away, even before you’ve missed a payment, you will have more options available to you.

MYTH: I’ve missed too many payments to get help.

There’s always time to get help. We can’t work miracles, but we can always give expert advice for any situation. That being said, the help we’re able to offer is far more constrained if you’re eight payments behind than if you’re one or two behind. The sooner we can get involved, the better chance you have of avoiding foreclosure.

MYTH: I’m getting many offers of “help” from a variety of different people. Are they all scams?

Because of the public nature of foreclosures, anyone is able to access foreclosure listings on a daily basis. These include the owner’s name and address at the very least, and in some states, they could include other sensitive information. Armed with this data, scammers can take advantage of a desperate owner. Here’s what to look for to avoid foreclosure scams:

1. Your home’s ownership changes hands. A common scam is where a party buys your home, then lets you rent it back. It sounds good at first, but you’re losing your property, and your new landlord can now legally kick you out of your home with little to no notice.

2. You’re asked to pay something up-front and/or you’re asked to stop making mortgage payments. Usually, these scams involve paying large sums of money to some sort of “foreclosure prevention service.” These services offer to do what our counselors do: counseling, a budget and approaching the mortgage company to consider a payment plan. But the services don’t do always do this work thoroughly, or follow through at all. The most important thing to remember when it comes to any foreclosure service is this: Foreclosure advice and direction should always be free.

3. You’re under pressure to act immediately. Some will prey on the stress and anxiety surrounding the foreclosure process by convincing owners to sign things they don’t understand. Don’t sign anything without either first talking to an attorney, your mortgage company or a nonprofit foreclosure prevention organization like the Homeownership Preservation Foundation.

MYTH: It’s impossible to stay in my house after foreclosure proceedings begin.

Contrary to what you might think, there are still options available to you after the foreclosure process has started. The sooner you call us, the more tools we’ll have to help you fix your situation.

Possible OutcomesEveryone’s situation is different and many factors determine what kind of help is available to you. Keep in mind that selling your home might be the best possible outcome for your situation. The counselors at 888-995-HOPE™ provide guidance and education, but the outcome for your home varies based on:

 

Whether or not you’re behind on your mortgage today. Calling sooner means more options are available to you; you can call us anytime in the process.

If you are affected by a short or long-term issue. Don’t worry, we can guide you either way.

The type of mortgage that you have and the rules that pertain to it. Mortgage servicers have a wide variety of outcomes that may be available to you. No matter what your situation, we can help. Don’t wait to call.

 

Having Problems making your house payment?

There’s options and it starts with communicating.

Call for help… Dial… 888-995-HOPE

 

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