When you have put your heart and soul into purchasing a home and making it yours, realizing that a foreclosure may be imminent can be devastating. Unfortunately many homeowners have had to face this heartbreak and move on. Here are some things every homeowner should know about the foreclosure process.
Preventing Some Foreclosure
Lenders are faced today with an excess of foreclosed homes. This has helped to encourage many of them to assist financially troubled borrowers more than they may have in the past. They will often work with homeowners to attempt to find refinancing options and debt relief programs. These opportunities should be seized whenever possible. If they are still not able to solve the problem, the lender will typically begin foreclosure proceedings once a homeowner has fallen a few months behind in payments.
Stopping a Foreclosure
If other debts, like medical bills or credit cards, are the reason the homeowner has found it difficult to stay current on their mortgages, filing bankruptcy may be a solution for keeping their home. This process will allow filers to eliminate some of their debt and have time to gather the funds they need to catch up on their mortgage debt. It is not a guarantee the home will be saved, however as the past debt will need to be paid and future payments made on time. If there is substantial value in the home, the property may be sold to settle other debts.
Damage to Credit
A home is not everything people in foreclosure lose, they will also see their credit rating drop dramatically. Many will already have a low credit rating because of their tardiness on payments, but their rating will drop even more after the foreclosure. This drop could be as much as 100 points or more. It could be years before the person affected will be able to get a loan, credit card or even qualify for a mobile phone plan.
A foreclosure is not something anyone should attempt to go through alone. Bankruptcy attorneys can give helpful advice about Foreclosure Casa Grande AZ residents need to know. If you are concerned about your own home and need some advice, please Browse Site for more information.
