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 Florida foreclosure myths and guidance for homeowners.
You Must Be Delinquent to Get Help
Home owners can start the process of loan modification and other assistance programs before missing any monthly payments. These options review your financial information to determine eligibility.
There Is Nothing You Can Do After Obtaining a Foreclosure Notice
Mortgage companies take a bigger loss on foreclosure. Even when foreclosure proceedings have begun, lenders can still find a way to prevent foreclosure. A short sale is also possible prior to a completed foreclosure. Short sales consist of having a buyer for your property and getting the lender to authorize a price lower than what is owed.
Foreclosures Happen Immediately After You Miss One Payment
The foreclosure notice is merely the first step in a lengthy process and it commonly is not issued until you have missed several payments. It may take an extended period of time for a lender to complete the necessary process to take possession of your home. Even though you do not need to immediately leave your property, you should prepare ahead of time by packing up things that you do not use and having a moving plan in place.
I Can Never Purchase Another Home
Although a foreclosure impacts future lenders and dramatically reduce your credit score, you may still be able to buy real estate in a few years. . Creditors may charge you a higher mortgage rate and request a larger down payment to offset the risk of giving you a new mortgage.
The Bank Takes All of My Property
Furniture, clothing, and other personal items are not taken. Only items affixed to the real estate are part of the foreclosure. This includes carpeting, light fixtures, major systems, etc. Consider what you would normally leave behind if you were selling the property and use that as a general guideline.
I Have No Financial Responsibility After Foreclosure
After foreclosure, a property may sell for less than what owed to the bank. You are actually responsible for that deficiency. There may be ways for the bank to “charge-off” the balance. Speak to a local attorney for a list of options.
Florida Foreclosure Myths And Guidance For Homeowners
There are a variety of other myths and facets of foreclosure on top of what is covered above. Procedures may differ from state to state as well. This blog on Florida foreclosure myths and guidance for homeowners 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.