This blog covers Newburyport MA foreclosure FAQs and guidance for property owners. Foreclosures are abundant and so is the misinformation on them. It is useful for current and future home owners to understand the facts.
Common Thoughts & Mistakes…
Only Delinquent Home Owners Get Help
Home owners should request loan modification and other assistance programs before missing any monthly payments. These options assess your financial information to determine eligibility.
You Can Not Save Your Home Once You Get The Foreclosure Notice
Mortgage companies take a bigger loss with a foreclosure. Even when foreclosure proceedings have begun, lenders still prefer to work out a solution to prevent foreclosure. A short sale is possible prior to a completed foreclosure. Short sales involve having a buyer for your home and getting the lender to authorize a price lower than the balance owed.
You Must Move Out Immediately After the Foreclosure Notice
The foreclosure notice is only the first step in a lengthy process and it normally is not issued until you are several months behind on your loan. It may take a long time for a lender to complete the necessary process to repossess your home. Although you are not required to immediately move out, attempt to prepare for it.
You Can Never Get Another Home Loan
Although a foreclosure is viewed cautiously by future lenders and dramatically reduce your credit score, you may still be able to get approved for another mortgage down the road. Expect a larger required down payment and higher mortgage rate. This is how lenders will offset their risk of lending to you.
All of My Property Will Be Seized
Furniture, electronics, and other personal belongings will not be taken. Only items affixed to the real estate must remain. This includes carpeting, lighting, major systems, etc. Think about what you would typically leave behind if you were selling the property and use that as a general guideline.
The debt is Forgiven After Foreclosure
After foreclosure, a property may sell for less than what owed to the bank. You are actually responsible for that deficiency. There may be ways for the bank to “charge-off” that amount. Contact a local attorney to understand your options.
Newburyport MA Foreclosure FAQs And Guidance For Property Owners
There are a long list of other myths and aspects of foreclosure other than what is above. There are sure to be state-specific differences as well. This article on Newburyport MA foreclosure FAQs and guidance for property owners is only an overview. Be sure to get legal guidance if you are in danger of foreclosure, and do so before you stat to miss any payments.