MYTH: My mortgage company would rather foreclose on my home than keep me in it.
The bank doesn’t want to foreclose on your home. A mortgage company sustains an average loss of about $58,000 when foreclosure occurs (Tower Group study). Banks are in the business of providing mortgages – not owning or selling homes – and would always prefer to keep you in your home. You have options even if you can’t make your payments the bank would rather you sell your home and take a loss than foreclose on the home.
MYTH: Foreclosure is an uncommon problem – I’m all alone in this.
Bad things happen to good people. Foreclosure is a challenge faced by a growing number of Idahoans every year. There are many reasons Idaho home owners face foreclosure whether you’ve been a victim of predatory lending, lost a job due to the ailing economy, or a multitude of financial hardships, foreclosure affects all walks of life. Rich, poor, young, old – the list is as diverse as society itself.
MYTH: I’ve only missed one payment – I can likely catch up.
It is important to remember when playing catch-up with your mortgage is you owe any delinquent payments plus the current month’s payment. Nearly half the people who use a forbearance or get a loan modification from their lender fall behind on payments again within 90 days.
MYTH: I’ve missed too many payments to get help.
Help is always available. The longer you wait the more limited your options become, but you can always receive expert advice for any situation. Because of the timeline in the foreclosure process the sooner you seek assistance, the better chance you have of avoiding foreclosure.
MYTH: All these offers of “help” from a variety of different people are legitimate?
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:
Spotting Scams
- 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.
- 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.
- 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 licensed real estate agent who understands the foreclosure process and has experience working with lenders.
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 get assistance, the more likely you’ll be able to avoid foreclosure. Make sure you read and understand the do’s and don’ts to avoid making your situation any worse.
