Many homeowners mistakenly believe that all lenders are eager to foreclose and take possession of their property. It is true that predatory or abusive lenders may intentionally lend money with the goal of pursuing foreclosure and repossessing the home. (To learn how to spot and steer clear of predatory lenders, see Avoiding foreclosure scams.)
However, legitimate mortgage lenders prefer to receive your loan payments, and will foreclose only as a last resort because it is a costly and time-consuming process. Lenders are required to explore options to keep borrowers in their homes. This means your lender may offer special “loss mitigation” programs to help committed borrowers avoid foreclosure.
This brochure was created by Consumer Action’s Housing Information Project. © 2007 Consumer Action. Rights Reserved.