Foreclosures are abundant and so is the misinformation on them. It is useful for current and future home owners to understand the facts. This blog covers Newbury MA foreclosure FAQs and guidance for property owners.
Only Delinquent Home Owners Get Help
Home owners can request loan modification and other assistance programs prior to missing any monthly payments. These options assess your financial information to determine eligibility.
You Can Not Save Your Home Once the Foreclosure Notice Is Issued
Mortgage companies take a bigger loss on foreclosure. Even when foreclosure proceedings have begun, lenders can still work out a solution to prevent foreclosure. A short sale is also possible prior to a completed foreclosure. Short sales involve having a buyer for your home and getting the lender to authorize a price below the balance owed.
You Must Move Out Immediately After the Foreclosure Notice
The foreclosure notice is only the first step in a lengthy process and it normally is not issued until you are several months behind on your loan. It may take a long time for a lender to complete the necessary process to repossess your home. Although you are not required to immediately move out, attempt to prepare for it.
I Can Never Get Another Home Loan
Although a foreclosure is viewed cautiously by future lenders and dramatically reduce your credit score, you may still be able to get approved for another mortgage in the future. . Also expect a larger required down payment and higher mortgage rate. This is how lenders will offset their risk of lending to you.
All of My Property Will Be Seized
Furniture, electronics, and other personal belongings are not taken. Only items affixed to the real estate must remain. This includes carpeting, lighting, major systems, etc. Think about what you would typically leave behind if you were selling the property and use that as a general guideline.
The debt is Forgiven After Foreclosure
After foreclosure, a property may sell for less than what owed to the bank. You are actually responsible for that deficiency. There may be ways for the bank to “charge-off” that amount. Contact a local attorney to understand your options.
Newbury MA Foreclosure FAQs And Guidance For Property Owners
There are a long list of other myths and aspects of foreclosure other than what is offered above. There may be state-specific differences as well. This article on Newbury MA foreclosure FAQs and guidance for property owners is only a general overview. Be sure to get legal guidance if you are in danger of foreclosure, and do so prior to missing any payments.