misfortune. This is a very emotional period, and it’s easy to get confused, so get everything in writing and understand the fees and contract involved. Your attorney can be an essential resource in this effort. If foreclosure proceeds, you will get evicted from your home. You’ll consequently lose your home as well as the equity you have accumulated so far. In addition: ; ; You could owe a deficiency balance after the foreclosure sale. This is the balance accrued if the sales proceeds are not sufficient to cover all costs. ; ; You forfeit the ability to get a Fannie Mae (Federal National Mortgage Association) mortgage. Fannie Mae is a government-sponsored enterprise and leading source of financing for mortgage lenders. If you do nothing in response to your foreclosure notice, your house and property will go to a foreclosure auction, which we will discuss in the next chapter. POINTS TO REMEMBER: ; ; Depending on the state in which you live, and the type of foreclosure action being taken, there may be time to save your home — if you act quickly. ; ; “Walking away” from your mortgage and allowing your home to go into foreclosure can have severe consequences for your credit and future ability to purchase property. ; ; Other options could be available to you, such as modifying your loan, negotiating a deed in lieu of
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