Foreclosures are abundant and so is the misinformation on them. It is critical for current and future home owners to know what is fact and what is fiction. This blog covers Waltham MA foreclosure facts and information for property owners.
Only Delinquent Home Owners Get Help
Home owners can request loan modification and other assistance programs prior to missing any mortgage payments. These programs review your financial condition to determine eligibility.
There Are No AlternativesOptions After the Foreclosure Notice Is Issued
Mortgage companies lose a lot more money on foreclosure. Even after foreclosure proceedings have started, lenders can still find a way to prevent foreclosure. A short sale is one solution prior to a completed foreclosure. Short sales involve finding a buyer for your home and getting the lender to allow a sale for less than what is owed.
Foreclosures Happen Immediately After You Miss One Payment
The foreclosure notice is merely the first step in the process and it typically is not issued until you are several months behind on your loan. It may take a long time for a lender to get through the necessary paperwork to evict you from a residence. Even though you are not required to immediately vacate the 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 Get Another Loan
Although a foreclosure can be a negative for future lenders and dramatically drop your credit score, you may still be able to buy real estate in several years. Use that time to elevate your credit rating. Also anticipate a larger required down payment and higher interest rate. This is how lenders will offset their risk of lending to you.
All of My Property Will Be Seized
Furniture, electronics, and other personal items will not be taken. Only items attached to the property must remain. This includes carpeting, light fixtures, cabinets, etc. Consider what you would traditionally 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 property may sell for less than the amount owed to the bank. You are actually responsible for that deficiency. There may be ways for the bank to “forgive” the balance. Consult with a local attorney for clarification.
Waltham MA Foreclosure Facts And Information For Property Owners
There are several other myths and aspects of foreclosure other than what is provided above. Procedures may differ from state to state as well. This blog on Waltham MA foreclosure facts and information for property owners is only a generic overview. Be sure to get legal advice if you are expecting foreclosure, and start the process before you miss any payments.