Foreclosures are abundant and so are the myths on them. It is important for current and future home owners to have accurate information. This blog covers New Jersey foreclosure myths and information for homeowners.
Foreclosure Myths
You Can Not Get Help Until You Stop Paying
Home owners can start the process of loan modification and other assistance programs prior to missing any mortgage payments. These options evaluate your financial condition to determine eligibility.
There Is Nothing You Can Do After Obtaining a Foreclosure Notice
Banks lose a lot more money on foreclosure. Even if foreclosure proceedings have initiated, lenders can still work out a solution to prevent foreclosure. A short sale is one solution prior to a completed foreclosure. Short sales consist of finding a buyer for your home and getting the lender to authorize a sale for below the amount owed.
Foreclosure Notice Means You Must Move Out of the Home Right Away
The foreclosure notice is only the first step in a lengthy process and it commonly is not issued until you are several months behind on your loan. It may take a long time for a lender to get through the necessary process to take possession of your home. Even though you are not required to immediately leave your property, you should plan for it.
I Can Never Get Another Mortgage
Although a foreclosure is a deterrent for future lenders and severely decline your credit rating, you may still be able to get another home in the future. . Also expect a larger required down payment and higher interest rate. This is how lenders will minimize their risk of lending to you.
All of My Property Will Be Seized
Furniture, electronics, and other personal items are still yours. Only items affixed to the real estate are part of the foreclosure. This includes flooring, lighting, plumbing, etc. Think about what you would normally leave behind if you were selling the property and use that as a general guideline.
The debt is Forgiven After Foreclosure
After foreclosure, a residence may sell for less than the amount owed to the bank. You are technically responsible for that balance. There may be ways for the bank to “charge-off” the balance. Consult with a local attorney for detailed options.
New Jersey Foreclosure Myths And Information For Homeowners
There are several other myths and facets of foreclosure on top of what is detailed above. Procedures may vary from state to state as well. This article on New Jersey foreclosure myths and information for homeowners is only a general overview. Be sure to get professional advice if you are in danger of foreclosure, and start the process prior to missing any payments.
