One of the most common misperceptions about foreclosure victims is that many of them simply allow their homes to go into foreclosure, as if it is a conscious decision made by the homeowners. However, this is not the case in nearly every instance, as homeowners will try every method they are aware of to save their homes; even to the point of running out of options long before they have run out of time. This is usually due to the fact that homeowners are vastly uneducated about various ways to stop foreclosure, and do not know of alternate methods that may allow them to keep their homes. Most people let their homes go into foreclosure simply because they do not have any other options to prevent losing it, not because they decide to let the home go, ruin their credit, and face financial difficulties for years to come.

Most homeowners face a financial hardship, like losing a job or unexpected medical problems, and get behind on their mortgage and other debt payments. They just can not get back on track once they have recovered from the crisis, even though finding a way to prevent foreclosure is often their most important goal. Once a loan gets further and further behind, though, lenders will not be willing to work with the homeowners to put together a repayment plan, and they may demand that the entire loan be paid in full. This is the beginning of the foreclosure process, and homeowners will quickly run out of time and options to avoid foreclosure.

Then, with the financial hardship and late payments, their credit scores begin dropping rapidly. They are unable to refinance to stop foreclosure, and they may not have enough income to put together a repayment plan with the lender. The mortgage company at this point may not even offer loan modifications or forbearance agreements, because the homeowners are so far behind that their current income situation would not allow them to qualify for the workout program. These are the two most common ways that homeowners attempt to save their homes, by refinancing and working with the lender, and if neither offers a viable solution, the foreclosure victims may feel they have no other option beside selling.

However, selling the property presents its own problems. With the real estate market the way it is in many parts of the country, a large number of homeowners find that they owe more on the home that it is worth. So they can not even sell the home without a short sale, which can cause tax liabilities. Especially if homeowners are unaware of how a short sale works or if it even is an option, they may simply give up after the house has sat on the market for some months with no prospects.

The homeowners, as a very last ditch effort, can try to buy the property back at the sheriff sale, but most counties require the winning bid amount to be paid within 24 hours to one week after the auction. Most homeowners facing foreclosure do not have the cash to pay for a house, and if they did, they would most likely just pay it to reinstate their current loan, rather than pay cash for their house at the sheriff sale. Buying it back is possible, but not very practical, even if they could get it at a good discount due to the drop in property values.

Most foreclosure victims only "allow" the foreclosure to happen because they feel they have no other options. It's not a decision like deciding to go to the mall for the day, or take a trip to Six Flags with the kids, and this decision is often based on false of incomplete foreclosure information. Homeowners have more options than they realize to prevent foreclosure, which is why it is important to get the most relevant foreclosure advice possible, and examine which options, besides refinancing, putting together a bank workout plan, or selling the property, would result in them being able to keep their homes and begin repairing their damaged credit.

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