If you don't understand exactly how foreclosure works, you're not alone. Most homeowners don't think about foreclosure until it becomes a possibility after they get behind on their mortgage payments.
If you're facing the possibility of foreclosure because you've gotten behind on your mortgage payments, you may be willing to consider any option that will let you keep your home. Unfortunately, there are a lot of unscrupulous people out there who prey on people who are in this position with foreclosure scams that make money for them. They may charge large "service fees" or even trick people into signing over their homes.
Overall throughout the U.S., the number of foreclosure filings fell during the first half of the year. The total number was down over 296,000 from the first six months of 2018. That's an 18% drop in a year and a whopping 82% decrease from 2010. Those numbers are from ATTOM Data Solutions, which recently published its Midyear 2019 U.S. Foreclosure Market Report.
In the first quarter of this year, Fannie Mae and Freddie Mac reported that they prevented nearly 39,000 foreclosures. According to the Federal Housing Finance Agency (FHFA), these two government-sponsored enterprises (GSEs) have stopped over 4 million foreclosures since the height of the recession in Sept. 2008. In the majority of cases (over 3,600,000), homeowners were able to remain in their homes.
If you receive a foreclosure notice from your bank, it's easy to believe they're the enemy. This can lead you down the wrong path, such as hiding from the lender as you attempt to figure things out on your own.
Receiving a foreclosure notice from your lender will make your stomach sink. Even though this is a challenging situation, it doesn't necessarily mean the bank will repossess your home.
It's scary to receive a notice of foreclosure, as this means your lender is inching toward repossessing your home. Although you're in a difficult spot, there are many ways to stop foreclosure.
When you borrow money to pay for a home, you're expected to repay it as agreed upon in the terms and conditions. If you miss a mortgage payment, it's imperative to catch up as soon as possible. Also, reach out to your lender to discuss your situation with them and to determine if there's anything they can do to help.
If you're facing foreclosure, it makes sense to contact your lender to find out exactly what's going on. Remember, your lender doesn't want to foreclose on your home, so they're more than willing to work something out with you.
It's never easy to admit, but if you can no longer make your mortgage payments, you need to be honest with yourself. Doing so increases the likelihood of saving your home and leaving yourself in a better financial position later.