4 Myths About Foreclosure

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Foreclosure is not only emotionally taxing, but it’s a process that is difficult to navigate on your own. Preventing foreclosure is something EZ Short Sales specializes in, and we’re attorneys that are dedicated to helping homeowners prevent a foreclosure on their property.

Learn more about foreclosure myths in today’s post.

Money and keys on top of a foreclosure document.

Myth 1: Foreclosures Are Caused By Financial Irresponsibility

What causes homeowners who are faced with a potential foreclosure goes much deeper than financial irresponsibility. There is a myriad of contributing factors including loss of income, medical issues, other debts, and even divorce that make it difficult to make monthly house payments.

At the end of the day, the beginning of foreclosure begins when the borrower stops making payments. The loan then becomes delinquent and the homeowner goes into default.

 Foreclosure for sale sign in front of a home.

Myth 2: Lenders Want To Foreclose On Your Home

Foreclosure is always the last resort for lenders, and the truth of the matter is, they have a legal obligation to get back the money that they’re owed.

Foreclosure doesn’t happen overnight, either. There is a 90-day default period in which the lender will be in touch to see if the borrower will be able to pay the balance of the loan. If the borrower can’t make payments, the lender may file an official Notice of Foreclosure.

Stressed out man in front of a pile of bills and his computer.

Myth 3: Refinancing Is Out Of The Picture

Refinancing is one approach homeowners often explore when trying to prevent foreclosure, but the important thing to note is that you’re not obligated to refinance with your current lender, you can seek out the best refinancing option.

It’s integral to navigate the foreclosure process with attorneys that have experience to be able to explore all the options available, and to better determine if refinancing is the best option.

Man and woman with bills and a calculator looking stressed out.

Myth 4: Foreclosure Is Always Bad

While a foreclosure dramatically affects your credit score, foreclosure isn’t always considered a bad option. It can be a reset to your financial situation and provide reprieve when your income or finances are limited.

Curious about your foreclosure options? From short sales and loan modification to loan forbearance and loan repayment plans, EZ Short Sales can help you prevent foreclosure while providing you the best options to avoid it.

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