Foreclosure: The Top 4 Questions
In order to attempt to determine the needs of those facing foreclosure, the Foreclosures Help website conducted a survey in August of 2008. The following article is a condensed version of the results of that survey, in order from most popularity to least. Every respondent of the survey identified him or herself as an adult resident of the United States who was more than 90 days behind on his or her mortgage and/or already in an ongoing foreclosure proceeding.
1) What steps can I take to protect my home from foreclosure?
The most frequent question that owners of homes consider regarding foreclosure was, of course, by what method they could stop said foreclosure. Commonly, the question was stated more precisely than this, for example, some respondents asked what actions they could perform in order to shield their house from the foreclosure. Others asked how they could keep their property, and still others simply didn’t want the embarrassment of being evicted.
Divorce, loss of employment, and sudden medical bills are among the many things that can cause a homeowner to stop making timely mortgage payments. It does not take long for the bank to start foreclosure proceedings, and many of the homeowners don’t know how to defend themselves. The majority do not want to consider extreme measures such as selling the house or declaring bankruptcy, and refinancing is not usually possible. Most of these homeowners are suffering transitory financial trouble that they expect to pass quickly. While they can resolve the balance in arrears, the majority of American homeowners cannot do so immediately.
2) How do I protect my credit Score?
While in foreclosure, most homeowners will want to protect their credit record. The media’s constant tales of woe and seven-to-ten year credit ruination has scared every homeowner sufficiently. While foreclosure itself is long and drawn out, the black mark of it on a credit rating lasts much longer. While this mark stands, it is now common knowledge that foreclosed-upon borrowers cannot get any future loans for cars, real estate, business loans, and sometimes not even an apartment, despite being able to resolve the financial trouble quickly and make a substantial salary in the future.
3) What happens if I file bankruptcy?
Facing an imminent foreclosure, the prospect of filing for personal bankruptcy sounds like the most reasonable option. But since the state and local laws are always changing on this issue, there are of course many questions that these homeowners want to ask about it first. Questions like who gets the debt in a divorce situation, and especially which kind of foreclosure they need to file for.
4) Is it possible to force the lender to make a deal with me?
A final common question concerning foreclosure relates to the method by which they can make a financial institution agreeable to their goals. Generally, financial institutions can be difficult to work alongside while you are experiencing foreclosure. At times, financial institutions concern themselves with your troubles and attempt to negotiate an agreement with you, though jsut as often a lender files foreclosure without letting you know, and the police actually shows up at the trustee’s sale in order to extricate you from your home. Worried about times like these, homeowners truly desire to be told the method by which they may cause a financial institution to concern themselves with their situation, and negotiate a solution fast.
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