Can I Throw Away My Foreclosure Paperwork?

In the past, when homeowners faced financial distress, they relied on home equity loans, or in some cases, reverse mortgage home loans. Unfortunately, declining home values have left many people without options, and some have had no other choice but to let their home go to foreclosure. If you’ve lost your house to repossession, you may be ready to turn the page; however, you should not throw away your foreclosure paperwork under any circumstance.

For many, the foreclosure process is frustrating, humiliating and defeating. It’s no wonder why so many people want to forget the whole thing and destroy any and all physical reminders. Unfortunately, there may be times when you need to revisit the matter either to provide specific details to future lenders or double check to ensure that no mistakes were made.

When banks sell foreclosed homes, they often get much less than what they were owed prior to foreclosure. Many former homeowners are shocked when lenders come after them for this difference. To ensure that your legal representative can properly negotiate with the lender and/or prove whether or not you are being overcharged, you’ll need the original foreclosure paperwork.

There are any number of reasons why you may need your foreclosure documents. Don’t throw them away; instead, lock them up in a safe place and try to forget they exist until they are needed.

By Nathaniel Hutchinson
Financial Expert

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