Foreclosures are everywhere these days. Subprime lending practices at Foreclosures in San Diegoevery level of banking and the broadest, deepest recession since the great depression have coupled to make a wholly hellish experience for homeowners. It’s no surprise that home buyers are struggling. Wages are going down while interest rates on shady mortgages keep going up. The result is a lot of foreclosures and an epidemic of homelessness. But even though foreclosures have become more prevalent in the last few years, people don’t seem to understand this process very well. Foreclosure is a legal process for the transfer of property from one owner to another – that simple. There’s a whole lot of other baggage that comes with the process of being foreclosed upon, but foreclosure in and of itself is just a legal procedure like a lawsuit or bankruptcy. Educate yourself about this process by learning about the top three foreclosure myths.

Foreclosure means bank repossession

Sometimes, but not always. If your mortgage is bank owned then there is a good chance that the bank will be the one to initiate foreclosure proceedings when you fail to make your mortgage payments, but that doesn’t mean they are going to step in and yank your home away from you. A bank may begin foreclosure to pressure you into renegotiating the terms of your loan or to have the property sold at auction. If your mortgage isn’t bank owned, then bank repossession won’t even be on the table.

Foreclosure is your fault

You can’t always control your financial situation. Not every person facing foreclosure was financially irresponsible. Try not to prejudge. The most common reason for defaulting on a mortgage is actually unforeseen medical expenses.

Foreclosure means you’ll never get another mortgage for the rest of your life

The reality isn’t so dramatic. Yes, foreclosure is a black mark on your credit history that will follow you for years to come, but it isn’t forever. Even the most heinous default will be wiped clean from your credit history in about ten years. If you’ve been foreclosed upon you may have to become a renter for a little while, but don’t lose all hope of ever becoming a homeowner again.

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