The process of foreclosing on a home is long and complicated, with a large number of legal hurdles that must be overcome. During this process, it’s easy to accidentally make a mistake that can wind up costing you time, money, or a chance at avoiding the worst consequences of a foreclosure. Here are five common mistakes people make when they are facing foreclosure:
- Abandoning your home
- When some people face foreclosure, they may decide that things are already over and simply abandon their home. They believe that because they are already in the process of losing their home, they might as well leave and get things over with. Far from making things easier, though, this could have a substantial negative impact on your foreclosure case, and make it much harder to get legal or financial relief.
- Failing to maintain your home
- It may sound absurd, but even when you are in foreclosure, you should still keep your home well-maintained. Many people who get foreclosed on will neglect this duty, under the impression that it does not matter because they will be kicked out anyway. However, this could ultimately backfire, as a poorly maintained home has less value, and could result in complications if you attempt to refinance your mortgage or engage in a short sale.
- Giving up on negotiations with your lender
- Just because your mortgage lender has commenced foreclosure proceedings does not mean the time for negotiating with them is over. The fact of the matter is that a lender wants your money, not your home, and they will happily come to the negotiating table if it means they can avoid going through with a foreclosure. Approaching your foreclosure as a part of a longer negotiation can mean you get a far better outcome than if you give up from the beginning.
- Spending your mortgage money on other things
- Some people believe that, because they are being foreclosed on, they no longer need to hold back on spending their mortgage payments on other things. It can be very tempting to splurge when you are on the verge of losing your home. However, you may need that extra money as part of settling whatever deal you work out with your lender, or for getting a new place to live, so don’t go on a spending spree just yet.
- Trying to handle things without legal assistance
- Foreclosure can be a long and complicated process, and it is one you do not want to handle on your own. And yet, far too many people will try to manage their foreclosure by themselves, without legal assistance. By doing this, they overwhelm themselves and deprive themselves of knowledge that could save themselves and their families from unnecessary hardship.
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.