MYTH #1
My credit will be damaged forever.
Although a foreclosure will have a negative effect on your credit score, you can recover. Today's borrowers can be approved for FHA loans in as little as one year after a foreclosure. However, you can't have any other derogatory marks on your credit report at the time.
MYTH #2
There is no way to stop the process of foreclosure once it begins, unless you pay the balance of the mortgage.
Contrary to popular belief, there are several ways to avoid foreclosure without having to produce the entire balance or the entire mortgage balance. While the previous notion can be classified in the foreclosure myths folder, a free consultation with a qualified foreclosure attorney can prove to exponentially beneficial.
(Note: See our guide on what should be covered in a free consultation with a foreclosure attorney)
MYTH #3
The only solution is to lose my home.
On the contrary, there are several choices that you have at your disposal, but most people are unaware of them. While many borrowers think they can handle it on their own, the best solution is to speak with a qualified foreclosure legal professional, such as a representative at Amerihope Alliance Legal Services.
MYTH #4
Once the foreclosure process has started, there is no way to stop the annoying collection calls.
Undoubtedly, the collection calls can be extremely difficult to deal with once the foreclosure process has begun. Several homeowners choose to avoid answering their phones in fear that it may be the mortgage lender. However, under the Fair Debt Collection Practices Act, homeowners can write a cease and desist letter to the lender requesting that all collection calls cease. By law, the lender is required to stop the collection call efforts.
(Note: Click to download our free guide to writing a cease and desist letter)
MYTH #5
Foreclosures happen almost immediately.
After your receive the foreclosure notice, it's natural to feel as if your home is being snatched away from you. The verbiage used in the the notice is meant to convey a sense of urgency. However, the actual process of foreclosing your home takes several months to complete from beginning to end. Some states have foreclosures that can take less than six months. But the majority of the time, the foreclosure takes anywhere between 12 to 26 months for the homeowner to actually lose their home.
Myth #6
The main cause of most foreclosures is financial irresponsibility
Undoubtedly, there are cases where financial negligence is the culprit for the foreclosure. However, most homeowners were required to demonstrate a significant level of responsibility to qualify for the mortgage. In many cases, the foreclosure is caused by an unexpected event like an illness or job loss. The result is sudden and detrimental financial havoc for the homeowner. In addition, foreclosures seem to increase when property values decrease and interest rates rise, which results in higher mortgage payments and owing more for a property than what was originally mortgaged.
FACT: An Experienced Foreclosure Defense Law Firm Is Your Best Solution
Navigating your way through a foreclosure and the conglomerate of foreclosure myths can be stressful and confusing. However, a qualified foreclosure defense attorney can help you sort through those myths. Click the link below to learn how to choose a great foreclosure defense law firm that is most likely to fix your situation, not exacerbate an already rough time.