4 Common Mistakes Homeowners Make When Facing Foreclosure

 Posted on August 14, 2020 in Foreclosure

Even if you have never owned your own home before and do not have a track record of missed payments, the failure to make mortgage payments will eventually lead your lender to file for foreclosure. Foreclosure is the legal process through which a lender can seize a home from a borrower who has failed to live up to his or her obligations set forth by the mortgage agreement. While there are other violations that could lead to foreclosure, the overwhelming majority of foreclosure filings are prompted by the borrower failing to make payments.

The foreclosure process can be intimidating and extremely challenging for the average homeowner. It is very easy to make mistakes under such confusing circumstances, and a single error could end up costing you thousands of dollars. If you are behind on your mortgage, and foreclosure is looming, be sure to avoid these common mistakes that many homeowners make.

Mistake 1: Avoiding Your Lender

According to Illinois law, a mortgage lender must wait until you are 120 days or more delinquent on your mortgage to initiate foreclosure proceedings. However, the lender will most likely begin calling you and sending letters as soon as you miss a payment. Communication will probably increase as you get closer to being in default. While it may be uncomfortable to do so, you need to pick up the phone and talk with your lender. Doing nothing is not in your best interest. In most cases, your lender will have programs available that could allow you to work things out and avoid foreclosure altogether.

Mistake 2: Letting the Property Fall Apart

When you are behind on your mortgage, you may feel like giving up and letting your home fall into disrepair. After all, why should you care? The bank is just going to take the house anyway. The fact of the matter is that letting your home fall apart could eliminate some of the options that might prevent foreclosure. For example, a short sale will be much harder, if not impossible, if the house is trashed.

Of course, you probably do not have much money to spend on repairs, given that you are behind on your mortgage, but you should still keep up on the little things to the best of your ability. Be sure to clean, fix holes, and keep the property free of pests. Most importantly, do not actively destroy anything in the home because the consequences of doing so can be severe.

Mistake 3: Failing to Accept Reality

If your lender has initiated foreclosure proceedings, you need to face the facts. There is a good chance that you will soon need a new place to live, even if you manage to stop the foreclosure. Start saving the money that would have gone to your mortgage payments and begin your search for a new home. It is not a good idea to wait until the last minute, or you and your family could be left with nowhere to go.

Mistake 4: Facing Foreclosure Alone

It may seem like a waste of money to hire a lawyer if you believe that you are going to lose your home anyway. The reality is, however, that an attorney can help you explore options that you might not know about, as well as assisting you in minimizing the damage caused by the foreclosure. Your lawyer will also ensure that your lender does not violate any of your rights as the process moves along.

Call a Libertyville Foreclosure Lawyer Today

If you are facing the possibility of foreclosure, you need legal help now. Contact an experienced Lake County foreclosure defense attorney at Newland & Newland, L.L.P. to get the guidance you need. We will work closely with you throughout every stage of the proceedings. Call 847-549-0000 for your free, no-obligation consultation at our firm today.

Source:

https://homeguides.sfgate.com/common-foreclosure-mistakes-51270.html