Nobody dreams of going through foreclosure when they purchase their home. Who wants to have the bank take away their house? No one. Foreclosure is a process that is really tough on someone emotionally, especially if they have a family to provide for and take care of. Unfortunately, many homeowners think that the bank isn’t on their side, which couldn’t be further from the truth. The bank wants to help you! Know that they are not your enemy when it comes to foreclosure. In the beginning that is. If you wait until the end, it will be too late. You’ve got to talk to them to work things out before it gets too late. Here are the most common mistakes homeowners make during the foreclosure process. Read: Foreclosure Help Bank of America.
Your lender will try to contact you many times throughout the foreclosure process. Not answering the phone or door for your lender is the worst thing you can do; this is because you may miss the opportunity to save your home, or, force your lender to speed up the foreclosure process. Most homeowners think that if they miss their payments, foreclosure will come eventually. Know that lenders aim to avoid foreclosure. Sometimes they will offer to restructure your loan to help you avoid foreclosure.
If you file bankruptcy, you may be able to stall the foreclosure process; you might also be able to even keep your home by getting on a payment plan for your other debts and mortgage payments. Don’t make the mistake of not exploring your possibilities to avoid foreclosure, because there are possibilities. Many people stop maintaining their property when they have issues paying their mortgage, as they think the home is going to go through foreclosure anyway. This is not a good plan, if the bank closes on the house, you will be stuck with the money on home repairs. See: Your Options When Facing Foreclosure.
Some homeowners will vandalize the home out of spite to the bank; this vandalization can include stripping pipes, stealing fixtures, and stealing appliances. This resorts to serious legal consequences.
A short sale should be considered, if all other options are exhausted. If you find a buyer who is willing to buy your home, even for less than what is owed, you can still present this offer to your bank and they may accept the money as full payment. Don’t expect your credit score to rise—it will be a detriment; however, you will avoid the legal implications that come along with foreclosure on a home.
Just because you know your home is about to be foreclosed on, you should still be saving the money that was going toward your mortgage; obviously, you will need to find another place to live. You are going to have problems with this already, as your credit will not be so great from a foreclosure on a house added to it. Begin saving while you are exploring your options.
For further reading, see: Avoid Common Mistakes Homeowners Make When Facing Foreclosure. Also, check out this video if you are facing foreclosure: