Facing Foreclosure? Do Your Research 2
Beware of places that say they can make the problem go away, because in many cases, what they are doing is assuming the loan, so that you are no longer the owner of the property, but are renting it from the new finance company.
And in this case, you might be in even more danger of losing the house, being worse off than before, because you have no built up equity, you have lost your downpayment and any improvements you might have put into the house, and you have nothing to even try to sell. They can sell the house at any time.
The main thing is not to hide your head in the sand. You might be surprised to know that often times if you yourself even speak with the mortgage company, they might offer you an appropriate payment plan that could get you completely caught up on your arrears, or re-negotiate the terms so that you have a more manageable payment plan.
After all, what do they want with an empty house? Especially with foreclosures at an all time high, and prices low and a glut on the housing market because no one is buying, and they have to be much more cautious about lending.
They only make money on your interest payments. Better for them to have some money coming in, than lose it all if the foreclose, or you file for bankruptcy.
So do your research, talk to the government agencies here to help, and look at your budge realistically. It is no good you keeping the house if you can’t eat, or heat it.
Then tell the bank what you can afford, and see if there is some way to make up the arrears and get caught up, and keep up.
Foreclosure has become one of the most terrifying words in America. But be prepared, and it doesn’t have to happen to you.
Tags: Foreclosure, housing
