Odds are, if you're facing foreclosure, you knew it was an issue long before you got that first notice. While there are cases where people feel surprised that their home is being taken back by the bank, most people are well aware that they have been missing payments. They know the potential ramifications. They just do not feel like they have any other options.
Have you ever heard the term "boomerang buyer" applied to someone who is looking to buy a home? Have you been wondering what it means?
You think that you're going to go into foreclosure in the near future. Maybe you just lost your job. You got a part-time job to replace it, but you know it's not enough to pay the bills. Of course, you believe you'll have another full-time job in the future, but you anticipate a few months with far less income. If you miss all of those mortgage payments, you know you may lose your home.
From the outside, a foreclosure sounds simple. The bank essentially bought the house by providing the loan. The homeowner then stopped making payments on the loan, so the bank decided to take the house and sell it to recoup their costs.
When you hear that someone's home is in foreclosure, what do you think is the reason? Do you wonder if they got themselves into overwhelming debt through poor purchasing decisions? Do you assume they bought a home they could never really afford? Or maybe the breadwinner recently lost their job?
Debt has made failure to keep on mortgages a real problem across Ohio. Cuyahoga County, home to Cleveland and Euclid, has been in the top ten counties for foreclosure nationwide in recent years. Fortunately, the risk has been dropping even though the ranking has not moved.
Falling behind on your bills can impact your credit. Falling behind on your mortgage can impact your ability to remain a homeowner. Regardless of why you find yourself struggling to make your mortgage payment, your bank will likely only give you so much leeway before they start taking action. Efforts to collect on that debt could include foreclosure on your property.
When a bank or loan holder applies to foreclose on a property, there is a tremendous amount of paperwork that the loan officer needs to review. An important document that is included with this paperwork is a foreclosure affidavit. This affidavit is signed by the loan servicer as a way of verifying that he or she has reviewed and double-checked the accuracy of all the foreclosure documents submitted.
Like bankruptcy, foreclosure stays on your financial record. It impacts your credit score. In the future, lenders will be able to see that you didn't pay on your loan and lost your house, and it can impact your ability to get new loans and lines of credit.
When you can't make your mortgage payments, your lender could begin sending you foreclosure notices. Because you haven't paid your loan as agreed, your Ohio lender can threaten to take possession of your home, evict you and sell the property to recoup the loan.