Everything You Need To Know About Foreclosure.


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If you are interested in how to stop a foreclosure the best way, please visit my website at: www.realestatesolutions2012.com
We offer a solution that will immediately stop the foreclosure; and insure that your credit is not adversely effected.

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Everything You Need To Know About Foreclosure.

  1. 1. ==== ====For A Fast, Easy Way To Stop A Foreclosure, Check This Out.www.realestatesolutions2012.com==== ====There are myths that surround a foreclosure. These falsities may create panic in a homeownersmind. Therefore it is required that the person must know the Fact about foreclosures. Beforediscussing the common myths about foreclosure it is required that the person must be first sure onthe actual meaning of foreclosure. Foreclosure is referred to as the legal proceeding in which themortgagee (lender) obtains the courts order in which the mortgagor (borrower) right of redemptionof the mortgage property is terminated. This means that even if the borrower is ready to pay backthe complete loan amount to the lender along with the interest, the mortgaged property will not bereturned back to the borrower. The concept of foreclosure is not as simple as it appears and itinvolves many complications. Due to these complications there are many myths that are prevalentin the society which might create fear and at the same time it affects the person (either theborrower or the lender) in an adverse manner.Some of the most common myths surrounding the foreclosure are as follows:Myth: The bank forecloses on my house as soon as the debt period expires.Fact: No bank or any lender would want to go through the process of foreclosure. The lenderalways wants his money back along with the interest charged on the loan. Also the process offoreclosure is very lengthy and it might cost extra to the lender. The value of the property may notbe equal to the loan amount and most times is quite less. This means that with the process offoreclosure the lender is bound to lose a huge amount of money. Therefore the option offoreclosure is the last option and often times taken only when all other procedures for the recoveryof the loan have failed or the borrower has declared bankruptcy.Myth: The lender has threatened to foreclose on a property in New York, NY. I cannot stop thisNew York foreclosure because I dont have any money.Fact: This is not true as there are many ways by which the person can stop the foreclosure of theproperty in New York. There are many agencies present in New York that can help stopforeclosure free of charge. Also there are companies that offer bridge loans to help New Yorkhomeowners catch up on their payments and stop the foreclosure of the property. One only needsto approach these agencies and chart out a plan with them. It must also be kept in mind that theinterest rates on foreclosure protection loans are normally higher than the normal loans.Therefore, these loans must be taken with caution.Myth: I have received a letter from the lender stating that they will foreclose on my mortgageproperty if I do not pay back the loan in a week. There are no means by which I could avoidforeclosure. This will not only lead to the lost of my home but will also lead to a negative creditrating.Fact:There are many ways by which you can avoid foreclosure. One is to talk to the lender andwork out a plan whereby the borrower agrees to pay back the loan amount in the future along withthe interest or to pay the loan in installments spread over a time. The lender does not want yourhome, so most of the time you can come to a mutual agreement with the lender. However, if in any
  2. 2. case the negotiation with the lender does not succeed then you can contact a foreclosureconsultant and have a professional negotiate with the lender for you.Myth: I am behind on my mortgage payment. This will lead to foreclosure of the property.Fact: Yes, it is true that if you fall behind on your mortgage payment the foreclosure proceedingswill began. But not all cases result in foreclosure. This means that even you can be a part of theexception. First, you must try your best to pay the mortgage payments on time. However, if you lagbehind in the payments then dont hesitate to call your lender and work out a new paymentschedule. For the most part the lender will agree to the new payment schedule but you will alsohave to be careful that the interest rates might also be revised and new higher rates proposed.However, if in any case this also does not work out then contact a foreclosure agency for adviceand assistance.Myth: After I have received a New York foreclosure notice is it necessary that I should leave myhouse?Fact: Most of the states have very strong policies on foreclosure of a house. In Texas, you have21 days after you receive the notice to attempt to resolve the issue or the house will be sold atauction. Other states foreclosure preceding may not be as quick therefore the homeowner mayhave more time to save the house by paying the remaining amount or if this is not possible than hecan even arrange an alternative place to live. However, if the final notice of foreclosure has beenreceived by the borrower, then he is entitled to physically move out of the house or work it out withthe lender.Myth: Is it true that after a person has gone through the foreclosure then he/she might find itdifficult to acquire a new home loan?Fact:Yes, this is true that getting a loan after a foreclosure would be difficult but not completelyimpossible. This is because foreclosure is considered to be the worst thing that could appear onthe credit report. Therefore, a person might find that many banks are reluctant to grant a loan afterforeclosure. However, there are a few banks that will grant a loan to a person after foreclosure. Inthis case the person must be ready to pay a very large down payment and even the interest rateson the loan would be quite high. Also the norms and conditions on the loan are very strict.However, if the foreclosure was after 4 to 7 years then it might not be much of a problem for theperson to find a lender.Myth: If I declare myself as bankrupt I can protect myself from foreclosure.Fact: This is true but only on a temporary basis. This means that filing bankruptcy under chapter 7cannot be marked as a permanent end to the foreclosure. If you fail to meet the requirements andterms of the bankruptcy you will find yourself right back in foreclosure. Therefore you will need totake some more steps to avoid foreclosure in the long run.Myth: My property is of no use to me and I do not mind if the property is foreclosed by the lender. Iwill not have to pay anymore payments and I will not be liable for any outstanding debt from thelender.Fact: As mentioned earlier it is clear that if a person has a foreclosure on their credit history then itis the worst situation that you can have. Therefore, even if the property is of no use to you it isnecessary for you to make all the efforts possible to save the property from being foreclosed on bythe bank. If you want to have a good credit history it is helpful for you in the long run to try to nothave a foreclosure on you record. Also keep in mind that if the foreclosed property is auctioned fora lesser amount than the outstanding loan amount then you are liable to pay the lender theremaining amount of the loan. The lender can even charge interest on the outstanding amount.Myth:During the foreclosure process or even after the foreclosure of the property is it true that thelender can send me to jail if I dont pay?Fact: No, this is not true in any circumstances. The lender cannot threaten to send you to jail for
  3. 3. non-payment of the loan amount. However, the lender has all the rights to move you out of theforeclosed house. Therefore if you are threatened with jail by the lender then you can file a formalcomplaint. I suggest you consult an attorney to discuss your options.Apart from the above mentioned myths there are several other myths prevalent in the society.Therefore it is necessary for the borrower to approach an expert on this matter and seek his/herclarification.You can go to our website at www.realestatesolutions2012.com to learn more facts aboutforeclosure and how you can stop the bank from foreclosing on your home. Youll also find muchmore helpful articles, guides and educational videos about the foreclosure process. TroubledHomeowner has foreclosure consultants that are available to assist you with you any and allproblems that you have with your home.David Cathey is a Chairman of the Board of The Real Estate Solutions Organization. David helpshomeowners in the New York, New Jersey area overcome difficult situations that may arise duringhome ownership. David believes in the sharing of knowledge and information.==== ====For A Fast, Easy Way To Stop A Foreclosure, Check This Out.www.realestatesolutions2012.com==== ====