Many homeowners all over the country fear the word foreclosure. Being forced to move out of the home where you’ve built so many memories is a nightmare. In the first half of 2016, the country’s primary source for housing data, RealtyTrac, reported that 533,813 properties had foreclosure filings. Listed below are important things you want to know if you are facing foreclosure.
1. Foreclosures will take time.
There are times when people look at a foreclosure as a single act. In reality, it is a series of steps that occur over a period of time. For instance, it may take anywhere from a day to a year to release a notice of foreclosure in the state of Arizona. At least 90 days is given for the homeowner as his last chance to pay the overdue mortgage after he receives the notice of foreclosure.
2. Foreclosure will have an effect on your credit score.
Most of the time, a foreclosure makes a credit score decrease from 200 to 300 points, which can turn your good standing to a terrible one. Fortunately, those who have good credit history before receiving a notice of foreclosure will only have temporary damage to their credit score. If you continue to regularly pay your bills, credit card debts and past due accounts, these positive actions will help your credit score to be back on track.
3. You can prevent a foreclosure to be filed against you.
If you are falling behind in payments for your home, you need to contact your servicing company or lender as soon as possible. Foreclosures are expensive and time-consuming. Usually, the proceeds from a foreclosure are not enough to pay off the loan.
Many lenders have a team that can help you come up with possible solutions to avoid foreclosure. Bankruptcy can also help you avoid foreclosure, depending on the kind of bankruptcy case that you file. It will give you temporary relief due to an “automatic stay” period that will prevent your lender from taking steps into filing foreclosure.
4. Not all hope is lost. A lawyer can help you.
You don’t have to go through this process alone. Foreclosure is quite complex since the court procedures may vary in each state.
For this, you can seek the help of an experienced foreclosure attorney to help you file your documents in court and understand rules of evidence. A foreclosure attorney can identify mistakes that the lender made in the foreclosure process as your defense. He can also help you modify your loan, inform you about your loss mitigation options, and ensure that your lender abides by the rules during the process. Written by The VanMatre Law Firm, one of the top real estate attorneys in Columbia, MO.