You might not be familiar with the term “foreclosure complaint” this happens when you’ve fallen into arrears on your mortgage, and your lender is taking their first steps towards repossessing your home.
There are an unfortunate number of myths circulating both online and offline about how to deal with a foreclosure complaint, many of which could result in even more damage to your finances. Let’s take a look at the most common ones.
#1 Just Ignore It
This is probably what got you into financial hot water in the first place, and we can assure you that ignoring a foreclosure complaint is the worst possible way to deal with it. You’re given 35 days to respond to this legal document, but failing that your lender is within their rights to proceed with the foreclosure process.
#2 Representing Yourself
Some people decide that they’ll represent themselves on the day of their foreclosure hearing, play to the judge’s sympathies with a sob story, and then walk away with a reprieve for several months. This is a bad idea because no matter where you live in the United States any court you attend will have heard every sob story imaginable. If you’ve already chosen to ignore the foreclosure complaint, in the hope that you can throw yourself at the mercy of the court, then you’re in for a rude awakening.
#3 Pending Loan Modification
If you’ve been sensible enough to contact your lender about your financial problems then there’s a good chance they’ve provided you with a loan modification. The mistake some people make is that a loan modification automatically cancels out the foreclosure process, but this isn’t always the case. You should consult a foreclosure attorney before making dangerous assumptions.
#4 You Can’t Avoid Foreclosure
Although receiving a foreclosure complaint might seem very final, it’s actually not, and this is especially true if you’ve found a way to repay your arrears. Even if you don’t have enough money to repay the entire amount of arrears due, you can still work with your lender to put together a payment plan, or loan modification, which allows you to keep your home.
#5 Relocate Immediately
You do not have to move out of your home just because you’ve been served with a foreclosure complaint. In fact, the entire foreclosure process takes several months to complete, and most property owners are allowed to reside in their property, even if they can’t afford to make another mortgage payment, until the day the property is sold at auction.
The best way to deal with a foreclosure complaint is to contact an experienced foreclosure attorney the same day you get it. You have a number of options available to you to resolve this particular issue, and your attorney is the best person to give you advice on that.