When you get that foreclosure notice in the mail, it feels like the lender wants to take your home away from you. You imagine someone sitting in an office, grinning at the fact that they get to take the house, even though you made payments on it for years.
That can leave you feeling stressed and depressed. Thankfully, that fantasy isn't how it works. The bank does not really want your home. Lenders hope never to start the foreclosure process, even though they sometimes have no other choice.
After all, banks are just financial institutions. They want to lend you money and get payments with interest. That's it. They focus on the transfer of money over a long period of time. You benefit because you can buy things up front that you could never afford otherwise. They benefit because interest means you pay more for that house than it is really worth.
If they take your home through foreclosure, they lose money. They have to spend time and resources going through the foreclosure process. They have to pay wages to the agents involved. Even if they sell your home for exactly what you owe on it, they lose money. Plus, the bank doesn't often want to hold properties to look for the perfect buyer. That means that they may sell the house for less than they could technically get if they waited.
Banks are not trying to take homes. They don't want them. They want money. As a result, it is very important to look into all of your options when facing foreclosure. You may be surprised to learn what you can do to put an end to it and keep your house.