It should come as no surprise that foreclosure is challenging for many to face, which is why a foreclosure defense lawyer people rely on can play a crucial role in understanding the process so that they can make the most informed decision possible. Foreclosure is often a highly emotional, painful, and challenging process. However, many myths are associated with foreclosure, and depending upon a person’s interests, it may be possible to either remain in the home or vacate it quickly. When the bank forecloses upon a home, it can be an incredibly stressful time, but when working with a team of professionals from The Law Offices of Ronald I. Chorches to assist in helping their clients facing foreclosure to fully understand their options and ensure that they are adequately informed when determining the best way to move forward. The following are common myths often associated with the foreclosure process:
Myth #1: Your Credit Will be Impacted Forever
While it’s true that foreclosure will impact a person’s credit, chances are that they are in default on their mortgage, and they may also be struggling to make their payments elsewhere. Because of this, their credit has likely been impacted for other reasons. Once foreclosure proceedings are initiated, a person’s credit will likely plummet closely afterward. While there are several ways to manage a foreclosure, in most cases, with diligence, a foreclosure typically will remain on a credit report for seven years. Yet, it’s still possible to rebuild credit.
Myth #2: You Will Immediately Have to Vacate the Home
Many believe that when they miss a mortgage payment, they will have to vacate their home immediately. However, the process takes time to happen. While borrowers must begin exploring their options fairly quickly, they won’t have to leave their homes immediately. The foreclosure process takes far more time than many may realize. Know that borrowers will have time to work out a plan for the future before they have to vacate their home, and, in some cases, there may be options for remaining in the home.
Myth #3: You Will Not Be Able to Keep Your Home
Some people mistakenly believe that there is no way to stop the process when they cannot make payments or their home is being foreclosed upon. Know that depending upon the timing, options available can allow the borrower to remain in their home depending upon the situation’s specifics. Options that may be available to prevent foreclosure can include:
- Filing for Chapter 13 bankruptcy
- Developing a repayment plan with the mortgage lender
- Forbearance when a mortgage lender offers to suspend payments for a specified timeframe
- Loan Modification
- Deed-in-lieu of foreclosure
Myth #4: If You Miss Payments, The Lender Will Want Not Work With You
It’s a common myth that when someone misses payments, the lender only immediately wants to move toward foreclosure. The lender will want to make every effort possible to work with the borrower to bring the loan back into good standing. Typically after three months of missed payments, the lender will send a demand letter and attempt to assist the borrower in working out a plan for them to return the mortgage to good standing.
When a person has a home that is being foreclosed upon, it is because they have been unable to make their mortgage payments, and a lender may proceed with the foreclosure process to recover the amount that is owed on the loan. When a borrower is faced with foreclosure, they experience a myriad of changes and challenges that a Connecticut foreclosure defense lawyer from The Law Offices of Ronald l. Chorches can assist in developing solutions for.