You can find many myths about foreclosure. There are those that are based in fact but several are just nonsense.

With this post we will strive to clear up some of these myths with some foreclosure information that you can count on. So keep reading to find out what is myth and what is fact.

The Myth: The bank wants to foreclose on your house.
The Facts: The mortgage company almost never wants your house, they want to be paid back with interest. As a matter of fact, mortgage companies hate initiating the foreclosure process and will bend over backwards to negotiate with borrowers to prevent a foreclosure. Sometimes the lender's flexibility just doesn’t do enough to stop the foreclosure. That is not to say that the lender “wants” your house.

The Myth: I received a foreclosure notice; I have to move out now.
The Facts: Most states have a very long foreclosure process. Even if you fail to prevent foreclosure you are not required to move immediately. After a foreclosure you are required to go through an eviction hearing. If you didn't leave, eventually you would be physically removed. Be sure you use the time to make different plans for housing or to discover a way to save your house from foreclosure.

The Myth: A chapter 7 bankruptcy will prevent foreclosure and will protect me from losing the house.
The Facts: A chapter 7 bankruptcy will prevent your foreclosure on a temporary basis only. If you are looking at foreclosure, eventually you should take additional action to retain your house as the owner.

The Myth: I can present a innovative plan to get caught up with my mortgage and show it to the mortgage company and they will support me.
The Facts: Mortgage companies, in most cases, involve complex bureaucracies and rigid methodologies. Usually the most ingenious plans were destined for refusal when conceived. Stick to a plan within formats and parameters the mortgage company deals with everyday to halt foreclosures. It is smart to get a foreclosure specialist who offers comprehensive scam free foreclosure programs to assist you when dealing with a bank.

The Myth: I must do everything I am able to save my house and continue to live in it.
The Facts: There are times when people should move on and begin again. Also there are situations where the owner just dislikes the house and does not have a desire to save it. There are methods to get out of a mortgage without totally trashing your credit by going through a foreclosure or just walking away. The plan should be to find the least damaging option to achieve the result you are after.

The Myth: When I tell the judge my sob story she is not going to put me out.
The Facts: A judge is going to follow the law without regard to your story. You may be granted additional time, but you will just be postponing the action for a while. Eventually you will have to move out if you are unable to come to an agreement with the lender.

The Myth: No one can help me in stopping my house foreclosure
The Facts: There are many methods and many professionals who can help you prevent foreclosure of your house. Loan-Modification-Masters.com is one such place to get assistance in dealing with a foreclosure.

The Myth: When I file a chapter 13 bankruptcy I get to maintain possession of my house no matter what.
The Facts: If you file a chapter 13 bankruptcy it must be approved by the court. Not only that but you must make all the payments ordered by the court or you will forfeit.

The Myth: The bank is not going to make me pay their legal fees for foreclosing on my house.
The Facts: Yes they will. Look at your mortgage documents, it is quite clear. Don't expect it to be inexpensive: $2000-$5000 is not uncommon.

P.S. Think about an option to buying silver bullion bars. This can sound strange for a person who has problem with finances. But you will be surprised to find out that if you leave that money intact in the form on paper - a lot can be eaten by inflation.

Filed under: Finance

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