Things That Nobody Told You About Foreclosure

• 29 Sep 2020
• Foreclosure Lawyer

Ups and downs in life are very normal and it is the way you deal with different situations that helps you to make the best of your decisions. Even if you are facing a foreclosure on your house, instead of panicking and being emotional, you will just need to take the right decision and act accordingly. You can begin by hiring a foreclosure lawyer as these cases are very complicated and you will never be able to understand the documents and jargon used in such type of cases.

A good foreclosure attorney will aid you in coming out of the difficult situation in the best way possible. But being completely blank about the foreclosure and leaving everything on foreclosure lawyer is also not a good approach as you will also need to research about a foreclosure by yourself. This is why we have brought some of the most important facts about foreclosure that nobody will tell you.

Foreclosure doesn’t mean the end of all the debts

There are many people out there who think foreclosure means complete removal of debts on the house but the truth is a far cry from this common misconception. There are surely many types of property owner’s debts that are wiped out because of foreclosures like HELOCs, mortgage, second mortgage, and much more. But the homeowner will still be liable to pay the HELOCs and second mortgage if these debts are not paid during the foreclosure.

In some areas, where real estate prices dropped, the current price of the house drops down the price at which the house was actually purchased. In such cases, the homeowner might have to repay the difference in price as well.

Lender’s obligation

When it comes to the obligation of the lender then different states have different types of rules. But in the case of mortgage foreclosure, there are basically three obligations that the lender needs to fulfil.

In almost all the states, the lender is supposed to provide a notice of default before moving on with the foreclosure proceedings. In addition to this, the lender is also supposed to provide written proof of all the money owed under the mortgage. This will include late charges, interest, principal, and much more. The third lender’s obligation is to provide a written statement that the property owner has never been a member of the armed services in his life. If you are not sure about the obligations then you can consult a foreclosure attorney.

Escaping through a short sale

If you get an offer from a buyer after the lender files a NOD, then the lender will have to consider it. But you will have to make sure that you get the offer before the foreclosure proceedings begin. If the foreclosure is on your house then the lender will mostly try to resell it but if you will come up with a short sale offer then the lender will consider this as a time and effort saving option.

So, if your house is located in a market, then put all your efforts into finding a good buyer for it before the foreclosure proceedings begin.

If you will keep your house then the bank will make more money

It might look surreal but it is the bank that will make the money if you will pay your mortgage with interest. This is one of the main reasons why if you will still have the option of refinancing, the bank employees will be motivated to work according to your plan.

Bank will never let you know this but in many cases, they will pay you to move out of your house. This type of program is known as ‘Cash for Keys’.

If you will be well-informed about your foreclosure and if you will work along with a foreclosure attorney then you will be able to come out of the difficult situation without any losses. So instead of panicking after getting a notice for foreclosure, choose the best lawyer and research the details.

Connect with us now and let us help save you from this disparaging stage of your life. We understand how hard it can be for anyone to go through with this and will make sure you get the best out of the arrangement. Our dedicated foreclosure attorneys are best suited to navigate you out of the foreclosure, taking the best course of action.