Foreclosure: Myth vs Truth

There are many myths and misconceptions about what will happen as a result of the foreclosure process. Below are a number of the most common myths dispelled and accompanied by the associated truths.

However, as always, we advise that you contact a foreclosure prevention professional for more complete information. They are better equipped and you should allow them, to handle the foreclosure process with and for you.

Myth: The bank wants to take your house to resell it.

Truth: Absolutely Untrue! The bank does not want your house, they simply want the money you owe. Banks are not in the real estate business. Banks hate going through the foreclosure process,they lose both time and money. More often than not the bank will work hard with the homeowner in an attempt to avoid foreclosure.

Myth: The bank wont accept your payments. They want to foreclose!

Truth: The bank wants you to bring your payments current. The interest collected on your loan is how they make their money. Though they might not accept a partial payment they will always accept full payment. If you are unable to make full payment the bank will typically set up a partial payment plan but you need to work this out with the bank in advance.

Myth: I just recieved a Notice Of Foreclosure, I have to move out NOW!

Truth: Relax, you've got time! Yes, you will eventually have to move but that will not be prior to the completion of the foreclosure process. Depending upon where you live, this could be quite a long time. In fact the foreclosure process might even give you several months, if not longer to move.

Myth: No bank will refinance me out of foreclosure!

Truth: Refinancing out of foreclosure will primarily depending upon the equity in the home and the resulting loan to value ratio of the new loan. If that ratio is right there are specialty lenders who will pay off your current lender and hold the note.

Myth: Just file bankruptcy and save the house!

Truth: OK first of all, this isnt as easy as it once was. Next, the new bankruptcy laws are far more difficult than they were in the past. Though bankruptcy will stop the home foreclosure temporarily, you will need to do more in the long run if you are facing foreclosure. Bankruptcy is now, even more than ever, your option of last resort

Myth: The foreclosure is done and so am I!

Truth: This thinking has come back and bitten many people. After foreclosure the home is sold at auction. If the home is sold at aution for less than is owed (including late fees, legal fees and more) then a deficiency exists. In this event you will still owe the difference (plus interest) even though you no longer own the home.

Myth: I've raised the needed funds to pay off the bank, but it's too late to stop the foreclosure process!

Truth: Not necessarily. In most states if you have the money owed the bank, they are required to take it and stop the foreclosure. Not only is it the law remember, the bank really doesn't want the house back anyway.

Myth: My house is gone and I can't buy it back!

Truth: Some states provide a "right of redemption" statute allowing a homeowner to buy back the house if they can pay off the bank in full including principal, arrears, penalties and costs within a specified and limited period of time.

Myth: They keep all my stuff once they take the house!

Truth: Not true! Your personal property is your's to keep. This includes furnishings, appliances, electronics and all other personal property. However, fixtures and permanent attachments to the should remain. Taking everything from the basement to the roof is only inviting trouble.

Myth: The bank did this, they can't really expect me to pay legal fees.

Truth: They can and they do! And worse, the law is on their side. Furthermore, if you want to keep your house you will be required to pay late fees and possibly penalties in addition. Depending on terms contained within your mortgage agreement these fees could be substantial and may vary considerably.

Myth: There isn't anybody, anywhere that can help me stop this foreclosure!

Truth: Though things might seem dire, this simply isn't true! In fact there is more help available than you might ever imagine. There are a variety methods and numerous professionals that can and will help you avoid foreclosure. Like this site, researching the internet is just one of the many valuable tools available to you. You might also want to pay attention to ads run on television, in the newspaper and other printed publications or you might even pick up the telephone!

For More Foreclosure Related Articles and Information including tools and resources for Avoiding Foreclosure, Preventing Foreclosure and Stopping Foreclosure point your browser to StopForeclosureNow.ArticlesEasy.com.