Facts and Fallacies about Foreclosure

Ramsey County

Making $ense of Dollars and Cents

June 15, 2009

The number of home foreclosures in the US has tapered off but is still occurring too frequently for too many homeowners. Foreclosure is a final step in an often long road of financial problems. It is also a step filled with emotions and sometimes not too clear decisions.

The Homeownership Preservation Foundation is an independent, nonprofit organization and provides U.S. Department of Housing and Urban Development (HUD)-approved counseling to people facing foreclosure through their hotline at 888-995-HOPE. Here's some of the myth-busting information they want the public to know.

Myth: “My mortgage company would rather foreclose on my home than keep me in it.” Actually, the mortgage company sustains an average loss of about $58,000 when foreclosure occurs. They are in the business of providing mortgages, not owning or selling homes—and they would always prefer to keep you in your home. Call the Homeowner's HOPE Hotline at 888-995-HOPE. They will help you work with your mortgage company to pay back your loan and stay out of foreclosure.

Myth: “Foreclosure is an uncommon problem. I'm all alone in this.” Actually, millions of Americans face foreclosure every year. Rich, poor, young, old--the list is as diverse as our society. If you're struggling with your mortgage payments, call 888-995-HOPE for caring, nonjudgmental advice.

Myth: “I've only missed one payment. I can probably catch up.” The most important thing to remember when playing catch-up is that you owe any delinquent payments plus the current month's payment. So, if you're a month behind, you actually owe two payments, last month's and this month's. If you call 888-995-HOPE before you miss a payment, more options will be available to you.

Myth: “I've missed too many payments to get help.” There's always time to get help. The Home Ownership Preservation Foundation can't work miracles, but they can always give expert advice in any situation. The sooner they can get involved, the better chance you'll have to avoid foreclosure.

Myth: “I'm getting many offers of "help" from a variety of different people. Are they scams?” Because of the public nature of foreclosure, anyone can access foreclosure listings daily. At the very least, the public record includes the owner's name and address; and in some states, the record could include other sensitive information.

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Go to Ramsey County Extension Service Home Page

524 4th Ave NE #5, 2nd Floor Ramsey County Courthouse
Devils Lake ND 58301
701-662-7027
email - NDSU.Ramsey.Extension@ndsu.edu