questions:
• What is the timeline for the foreclosure? • Are there any deficiency judgments applicable that will hold me personally responsible for the difference between my loan’s outstanding balance and what my home will sell for? • Is right of redemption available to me as a grace period in which I can reverse my foreclosure? During the 90-day waiting window, the homeowner has the right to redeem their mortgage. This means that you get the chance to pay off the mortgage and save your home. However, you have to pay the full amount you owe the lender. This includes the interest and any late fees as well as any costs incurred in the foreclosure process.
SHOULD YOU WALK AWAY?
It’s natural for your first reaction to the threat of foreclosure to be one of denial or avoidance. Early in the foreclosure process, it’s easy to get stuck in the denial stage, telling ourselves, “I can’t believe this is happening to me!” Sometimes, it seems that the easiest and least painful way to deal with the situation is to just do nothing. Some homeowners are tempted to just “walk away” from their mortgage when they can no longer make timely payments. If you’re thinking of walking away, there a few things you should know before you make that decision. A foreclosure dramatically affects your credit score. Your credit score will take a drop of 85 points to 160 points after a foreclosure (some sources say even more). This may affect your ability to buy another home for years to come. A foreclosure remains on your
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