Common Myths about Foreclosure

Originally posted 2008-11-29 14:00:55. Republished by Blog Post Promoter

The myths that people believe will save their homes from foreclosure are:

• ignoring it
• investors
• listing with a realtor
• filing bankruptcy
• refinancing

Myth 1 Ignoring the problem

Ignoring the problem is definitely not the way to handle the dilemma of foreclosure.  Ignoring increases the chance of the homeowner getting thrown out with no place to go.  Believe it or not, the foreclosure may keep you from getting other housing, as well. Believe me, there are options.  

Myth 2  Investors

Relying on investors to bail the homeowner out is definitely not the answer either because some investors are asking the overburdened homeowner to sign over their deed.  With doing this, the homeowner not only lost the equity in his or her home, but this practice may cause the homeowner to be in more debt and in a worser situation than when he or she was before.  One option that is available through my company is assisting the homeowner with private money investors that will look out for your best interest and help you stay in your home.

Myth 3 Listing with a Realtor

Listing with a Realtor does not stop foreclosure.  Most Realtors do not want to list your home with the threat of foreclosure.  Most Realtors do not want to list the home because of the cost of advertising a home that may not sell for what you owe.  It takes a Realtor that is familar with handling this type of situation.  It also will take a homeowner who understand that the objective is to get them out from under the mortgage before the bank forecloses.  This means that the homeowner must open his or her mail from the lender, so that the Realtor would know how aggressive the marketing plan must be to get the home sold before the foreclosure.  The homeowner must also realize that he or she may not get a profit off of the sale of the home.  Profit loss or gain depends on how aggressive the lender is on the foreclosure of the property and this varies from lender to lender and state to state.

Myth 4 Filing Bankruptcy

Filing bankruptcy may not stop foreclosure because the homeowner must make the bankruptcy payment and the mortage payment.  If the homeowner does not keep up with the payment on the home.  The home can still be foreclosed on.  What the lender will do if a payment is missed is file a “Stay of Relief” to continue with the foreclosure?  This will cause the total arrearages to be due and the homeowner is still paying the bankruptcy payment if  he or she can afford to.  However, the reason for the bankruptcy may have been to save their home but because they missed a scheduled mortgage payment to the lender during the bankruptcy the homeowner may still being foreclosed on.  

Myth 5 Refinancing

Refinancing may be an options if the homeowner qualifies fo the loan; however, be aware that some loan officers may wait until the day before the sheriff’s sale to tell the homeowner that they could not refinance their loan.  

The goal of my company is to help you – the homeowner to stay in your home if possible and to stop or avoid the foreclosure. We will assess your situation, and give you the best advise for your situation.  Remember you are under no obligation.  I look forward to hearing from you.  I do hope this information was helpful.

Also visit www.taylorbrownrealestate.com