There tends to be some misinformation on foreclosures. It is useful for current and future home owners to know what is fact and what is fiction. This article covers Franklin TN foreclosure FAQs and information for property owners.

Common Mistakes

You Must Be Behind to Receive Help

Home owners can start the process of loan modification and other assistance before missing any loan payments. These services evaluate your personal financial situation to determine eligibility.

There Are No Alternatives After a Foreclosure Notice Is Issued

Banks take a greater loss on foreclosure. Even when foreclosure proceedings have started, mortgage companies can attempt to allow you to stop foreclosure. Short sales are one possibility prior to a finalized foreclosure. They involve finding an offer on your property and asking the lender to accept less than the balance owed.

Foreclosures Complete Right After You Miss Just One Payment

The foreclosure notice is only the first step in the foreclosure process and it commonly is not issued until you have missed many payments. It will take a length of time for a lender to get through the necessary process to eventually repossess a property. Even though you do not need to immediately move out, you should start planning for it.

I Will Never Be Able to Purchase Another Home

Although a foreclosure is a deterrent for future mortgage companies and severely lowers your credit score, you can be able to buy real estate in several years. Use that time to increase your credit ranking. Also plan a larger required down payment and higher mortgage rate. This is how creditors will offset the risk of lending to you.

All of My Belongings Will Be Taken

Furniture, clothes, and other personal belongings are not taken. Only items affixed to the home are part of the foreclosure. Examples are flooring, hardware, and major systems. Think about what you would usually leave behind if you were selling a property and use that as a general guideline.

The Debt Is Forgiven After Foreclosure

The mortgage company will sell your property but may not get back the full amount owed to them. That difference is your responsibility. There may be ways for the mortgage company to “forgive” that amount. Speak to a local attorney to understand your options.

Franklin TN Foreclosure FAQs And Information For Property Owners

There are various other myths regarding foreclosure. Procedures can also vary from state to state. This article on Franklin TN foreclosure FAQs and information for property owners is only a generic overview and should not be interpreted as legal advice. Be sure to obtain legal advice if you are facing foreclosure, and think about doing so before being delinquent.