I’m sure a number of you maybe visiting this website because you were wondering about Foreclosures and what the consequences may be.  I’m not an expert in Foreclosures but I have some information about some of the problems you may run into if you decide to foreclose.  Before you decide anything, please consult a lawyer or someone who specializes in foreclosures.  It is too big of a decision to make just by reading some blogs or some articles posted by authors who don’t know your situation.

The number one disclaimer I’ve heard from consumers and realtors I’ve been working with is do not foreclose.  It may sound great that you’re going to be getting rid of your debt and wiping yourself clean of the monthly payments of that investment home or primary home you once loved.  But it could end up costing you more in the end.  Banks are in a tough market right now especially with a number of their customers in default and with a large number of properties currently in foreclosure.  They’re doing whatever they can to prevent a customer from foreclosing.  It costs a bank quite a bit of money to foreclose.  Think about it…. obviously a bank is getting the home back because the customer couldn’t sell it in today’s market and couldn’t rent it out for a profit.  The bank then has to auction the property off, and a lot of times they don’t get what the customer owed.  So they’re taking a loss for that, and then they have to pay for all the lawyer fees.  It’s just a miserable situation, and the number one cause for these large banks to shut their doors.

 So as a consumer what is the big deal with letting the bank take the fall?  The big deal is that the bank then has four years to come back and hit you with a lien.  So for the first year or two you may think you’re smooth sailing, but in reality you have an addition two years to worry if you’re going to get hit with a deficiency lien.  In the long run you may be in the same situation as you were before, so make sure you think long and hard.  Like I said before, consult a lawyer who specializes in foreclosures because not all situations are the same.

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