Freddie Mac is helping consumers separate foreclosure fact from fiction in a new video series recently launched on its YouTube Channel (http://www.youtube.com/FreddieMac). Each video dispels one of five common myths that could prevent people from keeping their homes if they face foreclosure. It is based on content from the Freddie Mac Get the Facts on Homeownership education and outreach materials. Here are five common myths that consumers should be aware of when it comes to dealing with foreclosures.
- Myth : If my house is foreclosed, I can never buy a house again-the foreclosure will stay on my record forever. Truth : A foreclosure can have a devastating effect on your finances and you personally, but you can recover. Use the time after foreclosure to prepare yourself for successful homeownership the second time around by creating a spending and savings plan and rebuilding your credit.
- Myth : I should stop paying my mortgage so I can get assistance with my mortgage payments. Truth : Stopping payment on your mortgage only hurts your situation and can expose you to foreclosure and credit difficulties that could require years to rebuild.
- Myth : If I'm late on my monthly payments, I'll lose my house. Truth : If you have a financial hardship and fall behind, it's possible to keep your house and get back on track if you contact your lender as soon as possible to discuss your options. You can also contact a HUD-approved housing counselor by calling the Homeowner's HOPE Hotline at 888-995-HOPE (4673).
- Myth : I am getting many offers for help from a variety of people. They are probably all scams. Truth : Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their home. It's important to always open and respond to communications from your lender, particularly if you've already missed a mortgage payment. In addition, if you are in a financial crisis or facing foreclosure, make sure you work with your lender or a HUD-approved counseling agency to avoid common scams.
- Myth : My lender is not responding to my inquiries, so I should just give up and face foreclosure. Truth : Whatever you do, don't walk away, and don't give up. It may take several attempts to reach your lender because their call volume can be very high.