Massachusetts foreclosures are abundant and so are the myths on them. It is important for current and future home owners to understand the facts. This blog covers Massachusetts foreclosure misinformation and guidance for property owners.
Foreclosure Myths
Only Delinquent Home Owners Get Help
Home owners can request loan modification and other assistance programs before missing any monthly payments. These options review your financial standing to calculate eligibility.
There Are No AlternativesOptions After the Foreclosure Notice Is Issued
Banks lose a lot more money on foreclosure. Even if foreclosure proceedings have begun, lenders can still allow you to prevent foreclosure. A short sale is also possible prior to a finalized foreclosure. Short sales consist of finding a buyer for your home and getting the lender to allow a sale for less than what is owed.
You Must Move Out Right After the Foreclosure Notice
The foreclosure notice is simply the first step in a lengthy process and it typically is not issued until you are several months behind on your mortgage. It may take an extended period of time for a lender to complete the necessary process to repossess your home. Even though you do not need to immediately leave your property, you should prepare ahead of time by packing up things that you do not use and having a moving plan in place.
I Can Never Purchase Another Home
Although a foreclosure impacts future lenders and dramatically drop your credit rating, you may still be able to be able to get another mortgage in the future. It is important to demonstrate good credit practices to improve your score during that time. Creditors may charge you a higher interest rate and require a larger down payment to offset the risk of giving you a new mortgage.
The Lender Takes All of My Property
Furniture, clothing, and other personal belongings are not taken. Only items affixed to the property must remain. This includes flooring, light fixtures, major systems, etc. Think about what you would traditionally leave behind if you were selling the home and use that as a general guideline.
I Have No Financial Responsibility After Foreclosure
After foreclosure, a residence may sell for less than what owed to the bank. You are legally responsible for that remaining amount. There may be ways for the bank to “charge-off” that amount. Consult with a Massachusetts attorney to understand your options.
Massachusetts Foreclosure Misinformation And Guidance For Property Owners
There are a variety of other myths and facets of foreclosure other than what is covered above. Procedures can also differ from state to state. This blog on Massachusetts foreclosure misinformation and guidance for property owners is only a basic overview. Be sure to get professional guidance if you are expecting foreclosure, and start the process prior to missing any payments.