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Foreclosure FAQ's

What is foreclosure?

Foreclosure is when the lender takes possession of a property when the borrower has failed to make their loan payments. In a foreclosure, the borrower is required to move out of the property once the foreclosure sale is complete.

Why would the lender foreclose on my home?

Foreclosure only happens when the borrower is repeatedly unable to make payments or stops making payments. As lenders almost always lose money on a foreclosure, it is a last resort to minimize losses.

What can I do if I have received a foreclosure notice?

Contact the Homeowner Solutions Center at 866-660-5804 immediately. Even if you feel you do not have any resources or ability to repay your loan, you may have options that allow you to stay in your home and/or minimize the negative impact on your credit.

Can I sell my home if I’m already in foreclosure?

Yes. You’ll need to list your property with a licensed real estate agent. The sale must be done before the foreclosure sale is completed.

Can I sell my home if I owe more than it's worth?

In some cases the answer is yes. This is known as a short sale or pre-foreclosure sale. This is something you would need to work out with the Homeowner Solutions Center at 866-660-5804.

What effect does a foreclosure have on my credit rating?

Foreclosures may stay on your credit report up to seven years and can make it very difficult to get credit during that time. If you’re already facing foreclosure, there may still be options to minimize the damage to your credit. Contact the Homeowner Solutions Center at 866-660-5804 to learn more.

Your mortgage loan is a legal contract in which you promise to repay the money loaned to you in a timely fashion. While being late or missing a payment has consequences, it does not necessarily put you in danger of losing your home through foreclosure. If you are having trouble making your mortgage payments please contact us to discuss and arrange alternative solutions.

As a loan servicer, ClearSpring is legally required to report past due or missed payments to credit bureaus every month. If you regularly make your payments on time, this monthly reporting greatly benefits you by creating a positive credit history. Alternatively, if you have late or missed payments these monthly reports could create a negative credit history, resulting in poor credit and higher interest rates on future credit cards and loans.

Remember, keeping your payments current and on-time builds a positive credit history, avoids additional fees, and will help you get better interest rates on the credit cards and loans you may need in the future.

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