Not Always the Vultures' Doing... Homeowners Tend to Make Common Foreclosure Mistakes

We have just spent the last few blog posts discussing Foreclosure Scams and how to avoid them. Well, what about avoiding your OWN mistakes?

Facing foreclosure can be a stressful, emotional process. Even if the signs of financial trouble are clearly approaching, many homeowners find it easier to avoid the situation rather than deal with the whole truth. This is a common mistake, and one that can be detrimental to your situation. When faced with the possibility of losing their home, many homeowners may feel...

• Stressed
• Overwhelmed
• Vulnerable
• Inundated
• Uneducated about the foreclosure process
• Uninformed about the reality of real estate transactions
• Unsure about the condition of their home
• Embarrassed about their current financial situation

Under these circumstances, a homeowner may exhibit some of the following behaviors:

• They may not want to open their mail or answer the telephone.
• They may seek assistance from anyone offering a solution, even if the solution may not be right for their individual circumstance.
• They may be unwilling to listen to any advice because of their emotional attachment to the home.
• They may be waiting on someone else to provide a solution without being willing to initiate any action themselves.
• They may not be willing to discuss the situation with others who are affected by the foreclosure, such as a spouse or co-borrower.
• They may be embarrassed about the situation and resentful of involvement by third-parties.
• They may proceed through life in complete denial until the last possible moment.

Although this behavior is understood, it is not healthy or proactive. No matter how overwhelmed you may feel, you MUST take action before it is too late.

In the next few posts, we'll discuss universal errors made by homeowners facing foreclosure and how to steer clear of these pitfalls.