Owning a home is a goal many people strive towards. If you have finally achieved this and are enjoying the rewards of your hard work, it can be devastating to realize you are no longer able to make payments. You are not alone, though; according to NeighborWorks America, over 80,000 families have homes that will enter foreclosure in a single month.
While the situation is undoubtedly stressful, it is important to remain sane and committed to finding solutions. It is also important that you do not rely on faulty information, such as the following three myths that are often mistakenly believed by people who are dealing with foreclosure.
1. You can stop payments while seeking help
Seeking help is always a good idea when you are struggling to make payments on your home, but stopping payments while you do so can have disastrous consequences. Do not abandon your financial responsibility with the assumption that seeking help negates your obligation. Even if you do find a solution, your mortgage lender will typically proceed with foreclosure motions in the meantime.
2. A loan modification will solve your problems
As soon as you miss a payment or indicate you are struggling to make them every month, you might receive an offer for a mortgage modification. While these offers may seem like a lifesaver at first glance, such an agreement will typically include an extended amortization which could be as long as 40 years. For some borrowers, this could amount to the remainder of your lifetime spent in debt.
3. You will lose your home after a late payment
It is vital to be proactive when foreclosure is a possibility, but you should avoid panic that will only distract you from focusing on a solution. Missing a payment is not ideal, but you will not lose your home after a single lapse. Instead of assuming the worse, start researching legal and financial resources that can help you deal with your situation effectively and efficiently.