Foreclosure Resources - Top 5 Foreclosure Myths

Myth #5: I’m getting lots of great offers of help ever since the foreclosure action began.

Don’t be fooled. These are often scams. Because of the public nature of foreclosures, anyone is able to access foreclosure listings. Scammers can take advantage of desperate owners. Avoid these proposals:

1. Someone offers to buy your home and rent it back to you. This might sound good at first, but, you lose ownership of the home. Your new landlord can evict you from your own home.
    
2. You are advised to make a payment up-front or stop making mortgage payments. Many people will offer services for a fee that you could otherwise get for free. By calling the Homeowner’s HOPE hotline (888-995-HOPE) you can receive most of the services these companies offer for free.
    
3. You are asked to sign something you don’t understand. Don’t sign anything without asking your attorney, your mortgage company, or a nonprofit foreclosure prevention organization.

Myth #4: I’ve missed too many payments to get help from anyone.

There’s always time to get help. Organizations like Home Ownership Preservation Foundation (www.995hope.org) are always willing to help. However, the help they are able to offer is more constrained if you are several payments behind instead of only a few.

Myth #3: I only missed one payment; I’ll catch up.

You will always owe not only your delinquent payment, but also the present month’s payment. When you’re a month behind, you owe two payments. Get help right away. Don’t wait for the problem to grow.

Myth #2: Foreclosure is a very uncommon and embarrassing problem; I have to face this alone.

Millions of Americans face foreclosure every year. They come from all different walks of life—young, old, rich, poor. There is no shame in getting help.

Myth #1: My mortgage company would rather foreclose than let me continue to live in my home.

Mortgage companies usually lose money when they foreclose on a home. They usually don’t want to own or sell a home. Often, mortgage companies are willing to work with you to pay back your loan and stay out of foreclosure.