Mortgage Loans and Foreclosure: If You Run and Hide, You Make A Bad Situation Even Worse
By Gerald Lucas
When debt is closing in on you, it’s natural to want to get away and run for cover. If you’re already in a tough financial situation, it’s hard to imagine things getting worse. Unfortunately, when you deliberately dodge your mortgage lender, you reduce the number of choices you have and you give your bank more control over your future. Moreover, if you run and hide, you make yourself more vulnerable to the sneaky tactics that banks and bank attorneys often employ like tacking on bogus charges and fees.
Has a bank ever ‘accidentally’ charged you for something that they weren’t supposed to charge you for? Banks seem to make these kinds of ‘mistakes’ all the time. Usually, these ‘mistakes’ only get reversed after you call or write your bank to complain. How would you feel if your bank won a judgment against you that was a lot higher than the amount you actually owed? You probably wouldn’t let your bank get away with putting a bogus charge on your monthly credit card statement, so there is no reason to let your mortgage lender get away with it either. Still, what would stop your lender from doing this to you if you were nowhere to be found?
Even if your property is foreclosed on, there’s still additional damage your bank and their conniving attorneys can do to you if you are not aware and vigilant. You should always fight to put yourself in the best position possible regardless of how dire your circumstances may seem. A first step should be to communicate early on with your lender. The more time you let pass, the more money your bank will lose which in turn creates more potential liability for you. You should consider foreclosure alternatives like a loan modification or a short sale as early as possible. While there are no guarantees, it is almost always in your best interest to avoid foreclosure if you can.
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