Five Common Misconceptions People Have About Foreclosure

While foreclosure is a more common legal procedure than most people realize, it is still widely misunderstood. As a result, people often go into foreclosure without understanding their rights and responsibilities, accidentally undermining their own case in the process. Here are five common misconceptions people have about foreclosure:

1. Misconception: Being foreclosed on means you will lose your home
   • Many people believe that the moment they first receive the notice that they are facing foreclosure, it is already too late to save their home. However, in reality this is just the beginning of a prolonged process, which need not end with them losing their home. Instead, every step of the process offers an opportunity to potentially remain in their home, provided they take advantage of their legal rights.
2. Misconception: You do not need to keep track of documentation
   • A surprising number of people treat legal notices about foreclosure the same way they treat spam letters in their mail. They believe there is no real reason to keep track of notices, letters, and other important documents on their own. However, by doing this, they potentially lose critical evidence, or miss opportunities that those notices provide.
3. Misconception: You do not need to take care of a foreclosed home
   • Along with the defeatist attitude that leads some people to give up on saving their home, there is also a common misconception that there is no need to perform maintenance or upkeep on a foreclosed home. However, this is far from the truth, as they still are responsible for ensuring their home is well-maintained. Letting a property fall apart can not only look bad in court, it can also reduce the value of a property if it is foreclosed on, reducing the amount it can sell for in a short sale or auction.
4. Misconception: Your bank only cares about kicking you out of your home
   • Some people believe that banks and mortgage lenders initiate foreclosure proceedings because they want to take their home, and thus there is no reason to negotiate with them. In reality, though, mortgage lenders want you to keep paying your mortgage, not to take your house, and thus are often willing to negotiate. This can give you a chance to keep your home by renegotiating the terms of your mortgage.
5. Misconception: You can handle a foreclosure by yourself
   • People often underestimate just how time-consuming and difficult a foreclosure can be. That is why you should speak to a lawyer with experience handling foreclosure law matters. They can review your case for you, and help you get the best possible outcome for your case.

At David J. Lorber & Associates, PLLC, we assist clients throughout New York who are at risk of losing their homes to foreclosure. We will explain your options and guide you in making the best decision for your circumstances. Call us at (631) 750-0900 or contact us online to schedule your Free consultation at our Setauket office.