Emotional Impacts Of Foreclosure
Most homeowners who experience foreclosure will be the first to tell you that the emotional aspect of foreclosure is by far the most difficult, with an overall sense of fear of abruptly losing their livelihood and memories, as well as losing their general sense of safety. An overwhelming sense of guilt, shame and embarrassment can often be difficult to deal with, in addition to the constant worrying about being behind in payments, "friendly reminder" letters from the bank telling you that you are behind (in case you forgot), falling for the modification "scams" being perpetrated by the banks out of desperation to save your house, the lurking possibility of a sheriff sale, and the feeling hitting "rock bottom" financially.
The emotions of FEAR and GUILT are most often experienced by homeowners during the foreclosure process, with a general fear of the unknown and what the foreclosure process involves, along with an overall sense of guilt of "how could I let myself get into this situation".
Most homeowners believe in the "American Dream" of owning a house, and will associate those feelings to their self worth within society. The feeling of self worth quickly erodes when going through foreclosure, with a sense of guilt and worry of "what will everyone think" and "I feel like a complete failure for letting my family down".
Homeowners need to keep in mind that many of the financial hardships being experienced currently are completely out of their control, and do not define them as a person.
It has now become widely known that most if not all foreclosures that were conducted by the banks were in fact illegal. The banks have used fabricated and forged documents (in order to re-create a "paper trail" that never existed) to commit fraud on the court and steal homes without having the legal authority to do so, with an end result of throwing people out into the street and into homelessness.
Even though foreclosure is a process with strict procedures that MUST be followed exactly otherwise the foreclosure will be invalid, the banks have a complete sense of disregard for the laws and due process in this country. Many homeowners have had the unfortunate experience of dealing with this first hand, with locks being changed and homeowners being thrown out onto the street without the bank having the legal authority to do so.
It is ESSENTIAL for homeowners to become informed and do all necessary research about their foreclosure in order to make sound decisions moving forward...whether it be fighting the foreclosure and making the banks "put up or shut up" and prove their legal standing to foreclose, or making the decision to pack up and start over.