Some banks take advantage of homeowners who are naïve about foreclosures, squeeze the last penny from them and eventually repossess and sell their homes. Many homeowners lose their property even when they are able to repay the mortgage.
If you have already been issued with a foreclosure notice, it is important to educate yourself about the whole process. This knowledge will shield you from fraudulent mortgage lenders and save you from financial losses.
Below are the dos and don’ts you should know about foreclosures:
- Familiarize yourself with state-approved foreclosure proceedings. Understand the laws that govern home mortgages, short sales, foreclosures and loan modification. Hire a foreclosure attorney to help you.
- Engage a loan modification attorney to negotiate the interest rates, adjust the repayment plan, lower the overall mortgage payment and even file for Chapter 7 or Chapter 13 bankruptcy.
- Sell the house before an auction.
- In case of fraud by the lender, initiate mortgage litigation. Fight against fraud with all the proof you’ve got, with or without a lawyer.
- Go through all agreement documents and put in writing all violations to act as proof when you file a mortgage lawsuit.
- Use Produce the Note technique when the fraud is so obvious yet the lawsuit is proving difficult on your part. The bank cannot present the promissory note that is signed with mortgage details if there has been a violation of the terms agreed upon. Demanding a promissory note halts the foreclosure procedure.
- Do not attempt to sell a house whose ownership is not clear.
- Do not wait on the state government to investigate and shut down the bank due to fraud. The investigations may take years to end and the bank may never be closed.
- Do not purchase unnecessary insurance.