Don’t let a bad situation spiral out of hand! Learn how to avoid these very common mistakes made during home foreclosures.
Nobody goes into the process of buying a home thinking that they won’t be able to pay the bills.
Jobs come and go, financial issues arise, and life gets in the way. Sometimes, allowing the bank to foreclose is the only way you can get your life back on track.
Unfortunately for you, this probably isn’t the bank’s first foreclosure rodeo. And you’ve probably never been through the process before. Which means they have the advantage.
In this article, we’ll discuss four of the most common mistakes made by people going through home foreclosures.
Mistake #1: Ignore the Problem
Nobody likes to be ignored. And the bank is no different.
If you start to miss mortgage payments, the bank will make many attempts to contact you. It can be tempting to ignore these calls and letters, especially if you don’t have the cash. But ignoring the problem won’t make it go away.
In fact, it’s to your advantage to keep the lines of communications open. Remember, lenders don’t want to foreclose on homes. It’s costly and time-consuming.
If you show them that you’re willing to listen and respond promptly to requests, they’re more likely to work with you. And you may be able to avoid the foreclosure altogether if you can work out an arrangement with your lender.
Mistake #2: Remain Ignorant
Learn everything you can about the foreclosure process. Lending institutions are already familiar with these procedures and you should be too.
Know the legal implications so that you aren’t surprised later down the road. Foreclosure isn’t something that goes away after you hand over the keys. It will stay on your credit report for years to come.
Banks must follow very specific guidelines to foreclose correctly. If you find that they aren’t doing things by the book, you may be able to buy yourself some time.
Also, educate yourself on other options. A short sale is when a bank allows you to sell the home for less than is owed and is often a great alternative to foreclosure. You may also want to consider filing bankruptcy to avoid losing your home.
Mistake #3: Cause Damage
One of the worst things you can do as a homeowner is damaging the property. It’s true that the foreclosure process is frustrating. And many people feel anger toward the lender in this situation.
But it’s not appropriate to cause any damage to the property. In fact, this behavior could cost you more money in the long run. And it could have legal implications if the damage is severe enough.
It’s also a big mistake to avoid doing regular maintenance on the property. This could come back to haunt you if you do get something worked out with the bank. Or if you find a buyer and try to sell the home in the future.
Mistake #4: Go It Alone
As we mentioned earlier in the article, banks know what they’re doing and you don’t. So it’s important that you get help when you can.
Hiring a qualified foreclosure attorney is your best bet when facing this daunting process. They can help you navigate these tricky legal waters and may be able to save you some money in the process. Plus, they’ll give you advice on how to proceed and possible alternative options.
Get the Help You Need for Home Foreclosures
Home foreclosures are never easy. But you can make the process less difficult by hiring an attorney to educate you and guide you through the foreclosure. Plus, knowing that there’s an experienced attorney on your side can give you the peace of mind you need to move on.
Contact the experienced attorneys at McFarlin LLP today to find out the best options for your home foreclosure. Call us at 888-728-0044 for a free case evaluation.