After a day of arduous work what people expect is the comfort of their homes and being with their families. Many years would pass by before you raise your dream home and stuff it with pleasant memories. But, a few missed payments of the mortgage would snatch the home away. The very idea of foreclosure is a bad nightmare for many. In this article, let us go through options that could be adapted to avoid foreclosure. Also let us skim through methods to evade the foreclosure scam.
The Nightmare of Foreclosure
There is the lingering fear of foreclosure that many homeowners suffer from. In some cases, unexpected financial crunch, loss of job, exorbitant medical expenditure, divorce or a person dying in the family can influence homeowner’s affordability to furnish his or her payments of the mortgage. A foreclosure happens when one lags behind in payment of the mortgage, thus making the lender retain your property.
In some cases the property is less valuable than the actual amount you have to pay to the lender. This leads to a complication of things, and it enables the lender to take up a deficiency judgment. The deficiency judgment depicts the difference between actual price of the property and the amount that you have to pay to the owner. If such a thing happens, one will not be able to retain his property. Also, he or she will need to pay an extra amount.
In the worst scenario, deficiency judgments and foreclosures will influence the credit score very badly. The foreclosure will remain in the credit report for more than seven to ten years. This will reveal to the future lenders that you might not be a suitable borrower. Things will get difficult for one to retain a mortgage of avail of a loan in the near future.
Be cautious of the foreclosure scams
As bad luck would have it, there are a huge amount of fraudulent companies which claim to come to your aid when there are imminent foreclosures. These companies wait to lay the bait for you and cheat you. These companies call themselves as the consultants with regard to foreclosure and as the foreclosure specialists. Before choosing any of these fraudulent outfits, check out the credentials and business credibility through sources as the US Department of Housing and Urban Development.
One has to know how the foreclosure scam specialists get to know him. They usually find it in the foreclosure listing in the local newspaper. Very soon, call start pouring in trying to deceive you into a deal.
There are various methods adapted by the fraudulent companies to cheat homeowners. The tricks that they adapt are
- Equity Skimming
- Equity Stripping
- Fishy Counseling Agencies
- Lender Scams
- Fishy Loan Transaction
- Internet and Phone Scams
Foreclosure is a very serious issue. If sufficient care is not immediately taken, you may lose your home and your credit score is also damaged. One has to have complete knowledge regarding the foreclosure and find out the exact mortgage assistance companies that pull you out of the difficulty. When proper attention is not paid to the difficulty, fraudulent foreclosure companies will start laying the bait. Next to your family, your home is the valuable property that you retain. One should not allow fishy companies to take him for a ride.
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