The best ways to avoid losing your home are to keep the lines of communication open with your lender and to contact an experienced foreclosure attorney. When you are unable to make mortgage payments on your home in a timely fashion, your bank or other secured creditor will start foreclosure proceedings. Very simply, foreclosure is when a mortgager sells your property in order to receive the money that is owed to them.
What Foreclosure Means
- You will in all likelihood lose your house.
- You will in all likelihood lose all the equity in your house. The mortgager is not required to sell your home for fair market value. Their primary goal is to cover the mortgage payment debts, taxes, liens, and attorney and auction fees. It’s unlikely any funds will remain from the sale once these fees are paid.
- Your credit score will suffer. A foreclosure will remain on your credit report for seven years, making you a higher credit risk. You will not qualify for loans or credit cards easily, and most likely the interest rates if you do qualify will be much higher.