Missing mortgage
payments may mean you lose your property; in a word, it means foreclosure is likely. Foreclosure means that
the lender takes possession of your home and sells it in order to get its money back. Technically, foreclosure is the legal
process that takes place when this happens.
· The last thing any homeowner wants to go through is a foreclosure. It's the worst
possible scenario for someone having trouble making payments on their home's mortgage and should be avoided at all costs.
When a house is foreclosed
on, the homeowner loses their home and any equity they may have built, plus their credit can be destroyed for several years.
The local community loses too - in the form of tax revenue the home produced, and it suffers from the blight of abandoned
homes.
Homeowners
who find themselves in a situation where they may eventually be facing foreclosure need to act fast. There are a few options
that, if done soon enough in the process, can save a person money and most importantly - their credit. Remember, once a foreclosure
hits your credit, it can take up to seven years to bounce back.
WHAT IS A SHORT SALE?
Perhaps the most common strategy to avoid foreclosure,
the short sale is when a lender agrees to accept less than the seller owes on the mortgage and the seller doesn't have
to bring money to closing to cover the difference.
-- Published on Aug 30, 2007,QuickenLoans.com
