1. My divorce decree states that my spouse is responsible for the
house. Therefore, I am relieved of my financial responsibility for the
If you signed the documents at the closing of the loan, you and/or
your estate are legally and financially responsible for the loan. Until
the property is QuitClaim deeded to the spouse and the mortgage company
grants a release of liability, all parties that signed the documents
at closing are responsible for the house.
2. The mortgage company wants my house.
A mortgage company makes the majority of their income from fees and
points. The processes that occur during mortgage default do not drive
revenue for the mortgage company. The mortgage company is not in the
business of owning properties but of servicing mortgages.
3. If I don't open the mail or answer the phone calls from the mortgage
company, they cannot foreclose on my home.
A servicer only needs to prove that they have attempted to contact you
to discuss the delinquency. They do not have to speak with you to begin
the foreclosure process.
4. The only options that I have are to pay all of the past due payments
and fees, sell my house for enough to pay my loan in full, let the mortgage
company foreclose on my home, or file bankruptcy.
There are many other options available to help homeowners who become
delinquent on their mortgage accounts. It is just a matter of understanding
what they are and where to go for help.
5. The mortgage company
will not help me because I am not behind on my payments.
Many mortgage companies now have programs in place to assist homeowners
who realize that they will not be able to maintain their payments and
may become delinquent in the future. This is known as imminent default.
6. The foreclosure sale
date has been set; therefore it is too late for help.
There are many ways to save the home even after the sale date has been
7. I cannot sell my house
because I owe more than it is worth.
If you qualify, there are programs that may allow you to sell your property
for less than the full payoff amount. There are factors including the
reason for default, the appraisal amount and the length of time you
have listed the property that need to be met.
8. I want my house. However,
my income has decreased. Therefore, I have to sell my house.
There are many programs that will allow you to keep your home, even
if your income has decreased. These programs could lower your payment
temporarily or permanently.
9. Bankruptcy is the only
way that I have to stop foreclosure.
There are many options available since it does not benefit the mortgage
servicer, mortgage investor or mortgage insurance company to foreclose
on the property.
10. Since I am already
in default, my credit is completely ruined. There is no reason to try
Steps can be taken to minimize the damage to your credit score. In this
day and time, a good credit score is essential.
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