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Aug 06, 2021
If you're in the market for a new property, chances are that financing is on your mind. While there's no guarantee of an interest rate without applying to different lenders and seeing what they offer first-hand, we can help guide you through some factors to consider when applying for a loan. Give us a call today and find out how we can help get the process If you are one of the many people who is struggling to make their monthly mortgage payments, then this article will help you. The process of defaulting on a mortgage and going through foreclosure can be complicated. We'll try to simplify it as much as possible here.
When you default on a mortgage, it means that you have fallen behind on your monthly payments. You can either ask for an extension or try to get the bank to accept a modification of terms instead of moving into foreclosure. If they refuse these two options, then the lender will go through with the seizure and auctioning off process. This is when banks seize homes in order to sell them for profit against unpaid debts from homeowners who are delinquent in their loan repayments. In some cases this can lead up to eviction so be sure not to fall too far behind before talking with your lender about different repayment plans designed just for people like you!
Getting your home foreclosed on will wreak havoc on your credit and make it close to impossible to get financing in the future. This signals to any future lender that you are at high risk and this will stay on your credit for seven years.
This also means that you are losing your initial investment of down payment and closing costs. When a property is foreclosed on and it is usually sold at a loss to someone else who will have to deal with the property.
In addition, people are often surprised that they can still get sued for any money left over on their mortgage even after it has been foreclosed on and sold off by the bank.
Mortgage lenders don't want you to default on your home either. The foreclosure process is their last attempt to collect their lost money but it is not their ideal scenario. If you are thinking about defaulting on your home and are unable to make the payments, reach out to your mortgage servicer. They will be able to help you develop a plan and may even offer a modification to your mortgage.
Foreclosures and defaults are a growing problem in the United States. It’s important to know your rights as a homeowner, how to avoid it happening to you, and who can help if you need assistance with foreclosure or default prevention. If you have questions about how foreclosures affect your ability to buy a home, give us a call today! We have experts on staff ready to answer any questions about financing for your next home. started.