5 common mistakes made during a foreclosure case

Going into foreclosure on your home can be a frustrating and defeating process. You’ve lived in a home that you love for any number of years, then you’ve hit a patch of bad luck and can’t afford to make your mortgage payment. Even if foreclosure feels unavoidable, there are things that you can do to protect yourself. At Claim Surplus, we’re experts in foreclosure cases and have a few common mistakes that we want to help you avoid.

Not trying to restructure the mortgage

Nobody likes to lose money, and that includes banks. If you’re at risk of foreclosing on your home, you can often work with your lender to restructure your mortgage. Not only does restructuring increase your chances of staying in your home, but it could make your mortgage more affordable in the short term. Presenting your bank with a proposal to restructure your mortgage based on what are likely temporary circumstances like a major illness in the family or being out of work could be the best option for avoiding foreclosure.

Ignoring notices from the bank

Your bank is going to send you numerous notices letting you know that your mortgage is delinquent and requesting payment. The worst thing you can do is ignore these notices. Although you might not know how to respond, you can hire a lawyer who can be the point of contact for your bank, so they have someone who can respond to their notices and let them know what’s going on.

Trying to keep a home you can’t afford

It’s normal for personal circumstances to change. You might have bought a home when you had a job that paid more and you were able to afford the monthly mortgage payment, then you changed jobs and don’t make quite as much now. After living in a home for several years, you’ve created memories and gotten comfortable, so it’s understandable if you don’t want to sell your house and move. However, you won’t be financially stable if you’re trying to continue living in a home you can’t afford. A foreclosure could be the best thing for you and your finances now and in the future.

Not considering a short sale

Those who are headed toward foreclosure should always explore the option of a short sale. If you’re upside on your mortgage, a short sale can be beneficial for both you and the bank, because you don’t have to pay the difference between the value of your home and the remaining value of your mortgage, and the bank still gets paid. While the bank will get paid for your home in a foreclosure auction, there’s a chance a buyer could end up paying more for the house with a short sale. Yes, a short sale will negatively impact your credit, but a foreclosure will as well.

Not hiring a lawyer

You have rights as a homeowner and it’s important that you have someone who can fight to protect them. A foreclosure lawyer will represent you in all proceedings, including taking care of all correspondence with the bank, attending hearings, negotiating your mortgage, and more. A foreclosure lawyer can also help you whether you do or don’t have a defense for your case.

Contact us for help

While we’re not lawyers, our team at Claim Surplus has strong relationships with lawyers who can help you with your foreclosure case. Get in touch with our team and we’ll help you get started. You can contact us by calling 407-759-6226 or sending a message using our contact form. We look forward to speaking with you regarding your case.