On August 22nd, 2008, the Foreclosures Help resource website conducted a survey of U.S. residents who are either now in foreclosure or at least three months delinquent on their mortgage. The purpose of the study was to get a better understanding of the needs of people who are facing foreclosure. Below are the survey results, ranked in order of popularity from most to least.
1) How exactly do I protect my home from foreclosure?
The most popular question on foreclosure homeowner’s minds was naturally how to stop the foreclosure. In many cases the questions was phrased more specifically, such as “what steps do I take to protect my home from foreclosure.”
Divorce, loss of employment, and sudden medical bills are among the many things that can cause a homeowner to stop making timely mortgage payments. It does not take long for the bank to start foreclosure proceedings, and many of the homeowners don’t know how to defend themselves. The majority do not want to consider extreme measures such as selling the house or declaring bankruptcy, and refinancing is not usually possible. Most of these homeowners are suffering transitory financial trouble that they expect to pass quickly. While they can resolve the balance in arrears, the majority of American homeowners cannot do so immediately.
2) How to protect my credit rating?
While in foreclosure, most homeowners will want to protect their credit record. The media’s constant tales of woe and seven-to-ten year credit ruination has scared every homeowner sufficiently. While foreclosure itself is long and drawn out, the black mark of it on a credit rating lasts much longer. While this mark stands, it is now common knowledge that foreclosed-upon borrowers cannot get any future loans for cars, real estate, business loans, and sometimes not even an apartment, despite being able to resolve the financial trouble quickly and make a substantial salary in the future.
3) What happens if I file bankruptcy?
Filing for Bankruptcy is something that the respondents only considered as the very last straw to keeping their property, but nearly 100% of them mentioned it. Unfortunately, all of them had many follow-up questions about bankruptcy, such as which kind of bankruptcy should they file for, is bankruptcy is worse for their credit record, and our favorite, who gets to declare the home during a bankruptcy when there is a divorce going on too. There were many such questions, all equally important.
4) Is it possible to force the lender to make a deal with me?
A final common question concerning foreclosure relates to the method by which they can make a financial institution agreeable to their goals. Generally, financial institutions can be difficult to work alongside while you are experiencing foreclosure. At times, financial institutions concern themselves with your troubles and attempt to negotiate an agreement with you, though jsut as often a lender files foreclosure without letting you know, and the police actually shows up at the trustee’s sale in order to extricate you from your home. Worried about times like these, homeowners truly desire to be told the method by which they may cause a financial institution to concern themselves with their situation, and negotiate a solution fast.
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