Mortgage is a stressful experience. Unfortunately for some, it is unavoidable. Knowing what not to do during this time can make things a bit easier and make the other side of foreclosure a bit brighter.
What shouldn’t you do during foreclosure?
Assume the Time to Negotiate Has Passed
If the foreclosure procedure has not yet officially or has just begun, you still might be able to negotiate or restructure a new deal.
The thing many struggling homeowners fail to realize is the bank does not want to foreclose on you. They are not out to get you and they would much rather just collect their money instead of taking ownership of your home. Foreclosure costs banks a lot of money and frustration, so many are willing to work with homeowners who are behind.
If you are facing foreclosure, assuming you have no options is a mistake. It never hurts to approach your mortgage lender about negotiating a new deal – the worst they will say is “no,” and you’ll be no worse off than before.
Neglecting Your Home
It might be tempting for some homeowners to neglect the care of their home if they feel they will be forced from that home in the near future. Unfortunately, this can create a worse problem for you, especially if a short sale becomes an option. There is no reason to spend a lot of money on home upkeep or maintenance, but you should keep up with the basics, even if you know foreclosure is on the horizon.
It is also important homeowners not intentionally damage their property out of frustration. Stripping fixtures or pipes, tearing down or damaging walls, or doing anything to intentionally ruin the property can be considered vandalism and can result in legal action against you.
For more information about the penalties for destroying your home prior to foreclosure, check out this article from Geeks on Finance,
Spending the Money You Would Have Put Toward Mortgage Payments
Once foreclosure is imminent, it might be tempting to spend the money you would have earmarked for your mortgage payments on other things. Instead, you should save that money and put it toward a new place to live. Chances are you will need to pay rent and because your credit is going to suffer, you might be asked to make a hefty security deposit. Save as much as you can during foreclosure because it gives you options as the process plays out.
Handling Things on Your Own
The first thing you should do if you suspect foreclosure is on the horizon is to contact a legal expert that understands credit, foreclosure, and bankruptcy. Many people assume bankruptcy is a drastic option that wouldn’t be appropriate for them, but if you are behind on your mortgage filing for bankruptcy can be a smart move. Bankruptcy might even make it possible to continue living in your home.
If bankruptcy is not an option, you still need to seek legal guidance for foreclosure. It can be difficult for a homeowner to walk away from foreclosure and in many states, banks have the option of forcing them to make up the difference if the home sells at auction for less than it is worth. Homeowners should not assume their situation is over once their home has been taken by the bank.
Are you facing foreclosure? Are you looking for a way to stop the foreclosure process and remain in your home? We can help. Contact the Law Offices of Robert M. Geller at 813.254.5696 to discuss your situation.