“It’s important for consumers to be aware of the steps they need to take when faced with the possibility of foreclosure, especially during the holiday season, when people may be tempted to shop rather then make their payments,” said Alan Kopit, a lawyers.com legal editor. “As a rule, if foreclosure is looming it is best to move forward quickly, speak to your original lender, formulate a strategy with the help of an attorney or financial planner and look for ways to increase your financial stability.”
Other findings show that 71% of American homeowners believe they would know what steps to take if their home were in danger of foreclosure; however, only half actually know the recommended first step. Half (51%) say they would contact their original lender, 18% would speak to an attorney and 15% would contact a foreclosure assistance organization.
Although most homeowners believe they know the appropriate steps to take when facing foreclosure, the survey found that more than half (51%) of Americans falsely believe that in a foreclosure the mortgage-holder loses all rights to their mortgaged property, with only 20% of Americans believing this statement to be untrue and 29% not knowing whether it was true or false. Similarly, half (52%) of Americans believe incorrectly that when their property goes into foreclosure, the mortgage holder is evicted.
“Navigating mortgages and loans can be confusing as rates and guidelines often change,” said Kopit. “The fact that many Americans do not completely understand the foreclosure process further reinforces the need to speak with a financial or legal professional in these situations.”
