Owning a home is a dream come true for many people. The day you buy your very own space to decorate and remodel as you please, now that’s living the dream! But then when financial hard times hit, risking losing your home due to foreclosure can abruptly turn into a nightmare that you just can’t seem to wake up from. Homeowners who are struggling to pay their mortgages due to financial turmoil may be relieved to learn that there are options out there to prevent foreclosure.
What are the signs of foreclosure?
No one wants to imagine going through foreclosure, as it is an unpleasant process. Not only does it impact your credit and make it harder to be approved for any kind of loan, but you can lose your home and the appreciation value it may have accrued since you bought it. When foreclosure happens, there’s never really a good outcome for anyone involved. The homeowner may lose their home and endure a complete life upheaval. And the bank may lose money too, since they won’t be getting owed payments on the loan and may have to resell the property for less than its value.
With this in mind, it is worth using all the resources available so that a homeowner can try to keep their residence, and the bank will be satisfied too. As a foreclosure lawyer from The Law Offices of Ronald I. Chorches has seen before, here are common signs that you may be headed towards foreclosure:
- Too much debt (especially if you are a homeowner with high collateral and consumer debt)
- You cannot afford to pay your monthly bills on time (such as car payments, utilities, and other related bills)
- You are accruing more debt in order to pay your bills (meaning you are likely living beyond what you can reasonably afford)
What happens during foreclosure?
When a homeowner cannot pay their mortgage on the home, eventually foreclosure will happen. A mortgage loan is used to purchase the home, and then turns into collateral if the loan isn’t being fulfilled. The owners agree to send in monthly payments in exchange for residing on the property until it is paid back entirely. A lender may repossess property and sell it to recover a portion or total of the outstanding mortgage debts. If the proceeds are not enough to amend the loan, then the borrower may be responsible for the monetary difference.
More families than ever before are going through immense stress, depression, and anxiety from the pressures of keeping up with bills. When finances dwindle, it can be difficult to see the light at the end of the tunnel, but it’s there, and homeowners should not give up. Homeowners are advised to get help as soon as possible, and even better if it’s from a reputable law firm such as The Law Offices of Ronald I. Chorches, to learn more about what their options are in fighting foreclosure.