Homeowner Rights on a Foreclosure

By Melanie Ullman
Homeowner rights on a foreclosure will vary by state, and depend in part on your mortgage or sale agreement. Keep in mind that banks and lenders don’t really want your house. They may have options to help borrowers through difficult financial times.

Homeowner rights can often be found by searching your state’s official government website. The federal Department of Housing and Urban Development, or HUD, has a website set up called “Homes and Communities” with a section “Avoiding Foreclosure in Your State”.

If you are a homeowner facing foreclosure, the first notices you receive will often offer good information about foreclosure prevention options that can help you weather financial problems. Be sure to open your mail. Your failure to open the mail will not be an excuse in foreclosure court. Later mail may include important notice of pending legal action.

You don’t need to pay fees for foreclosure prevention help – use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month’s mortgage payment) for information and services your lender or a HUD approved housing counselor will provide free if you contact them.

If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional.

As a homeowner, you have specific rights. Know what you are signing or you could sign away those rights. Read and understand every document you sign. If a document is too complex, seek advice from a lawyer or trusted financial counselor. Never sign documents with blank spaces that can be filled in later. Never sign a document that contains errors or false statements, even if someone promises to correct them later.

Get promises in writing. Oral promises and agreements relating to your home are usually not legally binding. Protect your rights with a written document or contract signed by the person making the promise.
Keep copies of all documents you sign.

If you are in or facing foreclosure, always make your mortgage payments directly to your lender or the mortgage servicer. Do not trust anyone else to make mortgage payments for you.

Homeowner rights on a foreclosure are for your protection. Never sign over your deed until you clearly understand what will happen to your rights to your home. Foreclosure scams often require you to “temporarily” sign over ownership of your home to another claiming it would be only as a means to help.

178 Responses to “Homeowner Rights on a Foreclosure”

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    Homeowner Rights on a Foreclosure | Helping Foreclosures…

    Homeowner rights on a foreclosure will vary by state, and depend in part on your mortgage or sale agreement. Keep in mind that banks and lenders don’t really want your house. They may have options to help borrowers through difficult financial times….

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