If you're facing foreclosure, it's easy to feel panicked and unsure of your next steps. Will you keep your home? Is your residence headed for a bank auction? Since a home is usually the most valuable asset any individual or family will ever own, making the right steps to increase the likelihood of a positive outcome requires avoiding some common mistakes.
The most essential thing to remember about the foreclosure process is:
Not all Foreclosure Notices Result in Actual Foreclosure
Keeping this important feature in mind should reduce the amount of stress associated with the foreclosure process.
The Foreclosure Process Isn't Instant
It's easy to believe that a foreclosure notice means that you'll be out of your home in days after the notice shows up in the mail, but the reality is that the foreclosure process actually takes a few months at the very minimum to complete.
Some foreclosures even take up to a year or longer before the process really starts rolling. According to Yo Chicago, the average foreclosure timeframe in Illinois is 817 days, which is one of the longest in the country.
Big Foreclosure Mistakes
The biggest mistake homeowners make when facing foreclosure is ignoring everything. The best way to experience a fast foreclosure where losing the home is quite likely is to ignore communications from the bank and foreclosure notices.
It's in the bank's best interest to resolve the foreclosure process without taking a huge loss on the price of the home, so speaking with a lender will offer potential for a much more positive result than using the "head in sand" technique.
Another mistake that homeowners make when facing foreclosure is trying to keep a home that isn't the best residence for a family's circumstances. Perhaps a change of job or a reduction of income has made it necessary to find a less opulent type of accommodation.
Build Savings During Foreclosure
It's possible to build a safety net while you're in foreclosure by remaining in your home during the process. Whether you're able to renegotiate with your lender or whether you end up leaving the home permanently, you'll want to try and save as much money as possible to help at the end of the process.
An interesting post from SuperPages regarding foreclosure mistakes suggests:
The foreclosure process can last several months. During this time, you can remain in your home and save the money you would otherwise be using to make mortgage or rent payments. This cash savings can come in handy when it comes time to buy another house or to put down a deposit to live in an apartment.
What You Do Want to Do
You likely have a fair amount of time to act before the process becomes unfixable, as long as you work with a lawyer and your lender to avoid losing your home. One of the first things you need to do, even before you contact your lender, is read everything associated with your home loan.
According to real estate advice website HouseLogic, it's important to read everything about your loan because:
Start by reviewing all correspondence you’ve received from your lender. The letters—and phone calls—probably began once you were 30 days past due. Also review your mortgage documents, which should outline what steps your lender can take. For instance, is there a "power of sale" clause that authorizes the sale of your home to pay off a mortgage after you miss payments?
Need Help Dealing With a Foreclosure?
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DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Suburban Legal Group PC shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.