THE TOP 7 FORECLOSURE MYTHS for ATLANTA HOME OWNERS & THEIR TRUTHS REVEALED....

By
Real Estate Agent with Seasons Realty Group of Solid Source Realty, Inc.

THE TOP 7 FORECLOSURE MYTHS for ATLANTA HOME OWNERS  & THEIR TRUTHS REVEALED....

I come across some of the same questions and "myths" from home owners over and over about Atlanta foreclosures. Its quite interesting how far these myths have spread over time and how inaccurate some of them are......I'm going to debunk a few of the common myths that seem to be circulating among consumers...

Myth #1: The bank really wants your home back.

THE TRUTH: Believe me, the LAST thing the bank wants is your home back. It's important to understand that the banks are not brokers, property managers, or agents, and they do NOT want that business. It's not your home they want, BUT THE MONEY LENT FOR ITS PURCHASE that they want to recover. Foreclosure is a time-consuming, last-resort process for banks, and most will do everything possible to work things out with a homeowner in order to avoid it.

Myth #2: Filing for bankruptcy stops a foreclosure.

THE TRUTH: This one stumps everyone. First, you have to look into the different types of bankruptcy and what you will find is that they vary as much as the color of socks in a sock drawer. While many think they can "cheat" the system this way, bankruptcy creates only a temporary delay in the foreclosure process, so using it as a strategy for stopping it altogether will ultimately fail.

Myth #3: The Atlanta Home Owner is NOT Responsible for Paying the Bank's Legal Fees.

THE TRUTH: SURPRISE......as an Atlanta Home Owner in default, you actually are responsible for ALL THEIR LEGAL FEES. All of the details are in your mortgage agreement, so take a close look at the fine print...I think the revelations might ASTOUND you.

Myth #4: Even if I pull together the money I owe after the foreclosure process has begun, it's too late to stop it.

THE TRUTH: : It's NEVER to late to work out options. I have had some Atlanta foreclosures stopped the DAY it was supposed to be foreclosed on. Banks and lenders do not want borrowers to lose their homes and they REALLY don't want another asset on their books. They consider the foreclosure option to be the ABSOLUTE last resort.

The truth is that lenders can expect MOST of the time to lose money in the foreclosure process. Even if foreclosure proceedings have begun, it's not too late to be considered for a loan modification, short sale or other foreclosure alternative. Borrowers should contact a REALTOR®  to find out what their options are as soon as they know their mortgage is becoming a difficult thing for them to pay. The best way to avoid a foreclosure is to put yourself in contact with the people who can help you along the process. YOU DON'T HAVE TO GO AT IT ALONE.

 MYTH #5: The bank will take all my stuff along with the house.

THE TRUTH: All personal property is yours to take; however, fixtures, floor coverings, appliances and anything else permanently attached to the house must stay.

MYTH #6: My involvement with the property is over once the bank takes it back.

THE TRUTH: After Atlanta foreclosure, if the bank sells the home for less than you owed on the mortgage, you'll still be responsible for the difference, or "deficiency." What's more, they can collect interest on that amount. A deed in lieu of foreclosure or chapter 7 bankruptcy may clear you of owing a deficiency, so consult a bankruptcy attorney if you have questions about your status and options.

AND, ONE OF THE MOST COMMON FINAL MYTHS IS.....

 Myth #7: If you're foreclosed on, you will not be able to get another mortgage.

THE TRUTH:  Will a foreclosure hurt your credit...YES and it's true that it may take a several years to qualify for a mortgage after a foreclosure, but it can be done with some effort and planning. If the default was caused by extenuating circumstances, such as a job loss or serious illness, then Freddie Mac guidelines state that the borrower must re-establish an acceptable credit reputation for at least the most recent 36 months before applying for a new mortgage.

 

 

 

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Topic:
Real Estate Market Trends
Location:
Georgia Fulton County Atlanta
Tags:
avoiding foreclosure
atlanta homes for sale
atlanta foreclosure
atlanta short sales
atla
atlanta short sale
tags atlanta foreclosures

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Ambassador
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Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Winter, very good point that bankruptcy is not the easy fix to the situation and that also someday your credit can again be repaired.

Mar 02, 2011 08:35 AM #1
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Winter Baserva

Realtor -Homes For Sale, Atlanta, GA
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