The thought of having one’s home taken away can be scary, which is probably why there are so many urban legends that surround foreclosure law. As Miami foreclosure attorneys, we have definitely heard a few tall tales from clients who have come to us dangerously misinformed. When it comes to foreclosure, knowledge is key for easing the stress of the situation and securing the best possible outcome. So, we have taken it upon ourselves to debunk these three leading foreclosure myths.
Bankruptcy is the Way Out
This kind of information is deceptive, and yet, extremely common. Many believe that filing bankruptcy can serve as a means of escaping a foreclosure situation. Somewhere along the line this strategy was deemed reputable, but by whom, we’re not sure. The fact of the matter is that while bankruptcy is a viable option for regaining one’s financial footing, it is not the way out of a foreclosure. That said, there are certain situations where utilizing bankruptcy as a means of delaying the process is effective, but only if bankruptcy is already advisable for the individual being foreclosed upon.
The Process Ends When the Bank Takes Back the Home
When a bank seizes a home, the homeowner’s involvement is not finished. In states like Florida, creditors who are not able to net the amount which is owed on the mortgage at the foreclosure sale are legally entitled to make a deficiency claim. If the bank is awarded a deficiency judgement, the debtor will be forced to repay a portion or even the full remaining amount owed. For this reason, it is crucial to work with a foreclosure attorney who will guide the homeowner through the entire process and fight for his/her rights every step of the way.
Foreclosure Cannot Be Stopped
The notion that foreclosure is an unstoppable force could not be more false. If the homeowner responds quickly with strong representation, it is very likely that his/her attorney can work with the creditor to devise a feasible alternative. Truth be told, pursuing a foreclosure is not in the bank’s best interest. The process is time consuming, so alternatives like loan modification or refinancing are often more appealing for a creditor. An experienced attorney can devise the right strategy to help the mortgager keep the home.
Myths like these can easily mislead homeowners into believing the worst when foreclosure seems imminent. With the right team behind you, a foreclosure notice will not be your undoing. Call the team at Graham Legal to have all of your questions answered.