Preventing foreclosure is one of the most financially important things you can do.  But how possible is it to get out of foreclosure once it’s begun?  Is there even a way to avoid foreclosure when you’re headed down that path?  Part of staying empowered as a Connecticut homeowner means understanding some of the myths about avoiding foreclosure – and the truth about them.  Here are some of the myths you might hear these days. 

Myth #1:  It’s impossible to get out of foreclosure once it’s started. 

Not true.  At the very least, you should be able to find some sort of protection in home foreclosure through filing Chapter 13 or Chapter 7 bankruptcy.  That’s at the very least.  In reality, there are ways out of foreclosure once it’s started, such as through real estate short selling.  In a real estate short sale, you essentially sell your home for less than the initial cost of the loan, which the lender agrees to take as payment in full.   
 
Just because something isn’t always easy doesn’t make it impossible.  If you’re willing to work with an experienced real estate attorney, you can find the help you needed.  

Myth #2:  I can’t get out of my foreclosure because of the housing market. 

Again, this isn’t necessarily true:  your individual situation requires thorough evaluation and analysis.  Lumping your situation in with the entire housing market is no way to look at foreclosure-avoidance strategy. 

Today’s housing market isn’t so healthy:  the rates of foreclosure were up a record 81% in 2008.  Believing that your individual situation relies on the nation’s housing market means that you have very little responsibility.  In reality, you need to get in touch with a real estate attorney to start learning about the different options you have – bad housing market or no. 

Myth #3:  I’m in foreclosure?  My finances are ruined! 

A foreclosure on a home certainly isn’t good news for the homeowner, but that doesn’t mean you should assume the worst.  Even if you have few other options available, you can consult with a lawyer to find certain protections through Chapter 13 and Chapter 7 bankruptcy.  It’s especially important not to make the assumption that your finances are ruined before you talk to a real estate lawyer about your foreclosure. 

Either before foreclosure or during it, you’ll still have some options.  These options include loan modification, the short sale of your home, and declaring bankruptcy.  In the process of declaring bankruptcy, your credit may take a hit – but you still may be far from “ruined.”  Advice from professional counsel is invaluable.  Connecticut Attorney Gary Seymour has the experience and dedication to help guide homeowners in choosing available options to help avoid foreclosure.  

In reality, feeling “ruined” is a matter of opinion more than fact.  If you want to find a healthy perspective on avoiding foreclosure, it’s time to consult with an experienced real estate attorney.