With so many homeowners facing foreclosure, coverage of this important topic seems to be everywhere.
Additionally, more and more foreclosure prevention resources seem to be available. But it's important to separate fact from fiction - the more you know about foreclosure and how it works, the better equipped you'll be to handle it should you or a loved one find yourself facing a foreclosure situation. Let's take a look at some facts and fallacies all homeowners should know:
#1. Once a lender files for foreclosure against your home, you have a certain number of days to vacate the property.
FALSE:The filing process is the beginning of the foreclosure process, but it does not mean you must surrender your home and move out in a set period of time. It does mean you must decide how you are going to answer your lender's actions. You have options, including securing a mortgage modification, selling your home in a "short sale," among other alternatives.
If your lender begins foreclosure proceedings against you, you should seek professional advice from a legal practitioner or a HUD-certified housing counselor. They can help you by analyzing your financial situation and identifying solutions that fit it.
#2. A foreclosure lowers your credit score and stays in your credit history for years.
TRUE: Typically, a foreclosure will reduce your credit score by 200-400 points, and will remain on your credit report for 7 years.
#3. A Foreclosure Prevention Specialist can save your home from foreclosure, guaranteed, although they charge for their services.
FALSE:There is no such thing as a guarantee against foreclosure, nor can any third-party promise you one, even if they collect a fee from you. Unfortunately, many companies are capitalizing on the recent foreclosure boom by offering so-called fee-based Foreclosure Rescue and Foreclosure Prevention services. If a service provider is charging an up-front fee, don't use them. Instead, look for HUD-certified housing counselors to help you face foreclosure. These trained professionals know what local and national governmental programs may be available to assist you, and can steer you in the right direction for your situation.
If you are facing foreclosure, call InCharge Debt Solutions to speak with a HUD-certified housing counselor who can help you determine the best course of action for your situation, or click here to visit our website. We're here to help!