Let's clarify things here.
First, I did not say the process is true for all states. The process is generally true for judicial states (which I mentioned above). Also, I said you can stay in your home UP TO 220 days if you are in foreclosure (which means you can stay less than that). By the way, if you look at the image that I included in my post, that image came from MORTGAGE BANKERS ASSOCIATION...and not my "opinion". Bankers themselves estimated the process can take up to 220 days...after you get the Summons to Foreclosure.
Second, at least we agree on one thing: ignoring the foreclosure is a bad idea. What I meant by "giving the keys to the bank" in the earlier paragraph is NOT doing anything, not even cash for keys or doing a deed in lieu.
Third, "A foreclosure is worse than a bankruptcy" - is factual from the sense of its effect on one's credit score. One of our foreclosure defense attorneys (she has handled 250 cases) told us that a foreclosure can lower one's credit score by up to 200-300 points. One of my partners went through a foreclosure personally and he told me what the impact is on his credit. His credit is in BELOW 400s. In contrast, one of our clients did a Chapter 7 BK and her credit score is in the 600s. Have you suffered through foreclosure yourself? Did you go through a bankruptcy to compare foreclosure vs. BK? I am basing what I wrote based on experience not some theoretical knowledge.
Fourth, I said if you go into foreclosure you can get a deficiency judgment or 1099. Banks can opt not to file a deficiency judgment but I have seen them file deficiency judgments. Again, why take the risk when exploring alternatives to foreclosure can result in lesser "damage".
Fifth, shortsales and Deed in lieu are still damaging to your credit (worse than a 90+ days late on your credit) but, again, I can tell from the experience of our clients that they are NOT as damaging as foreclosure. Again, I am basing things from experience not theoretical knowledge.
Sixth, I never mentioned the borrower has to always get an attorney. In fact, I even said they can do it on their own ("pro se"). Please read what I wrote above and read it again.
So what's the information that banks don't want you to know? I agree. There's no secret if you do the research. However, consumers are left in the dark about things like the possibility of getting a deficiency judgment and the impact of foreclosure on one's credit. I've seen homeowners vacate their homes and they have JUST gotten the Summons to Foreclosure (and therefore they still have time). Of course, banks won't tell them that they still have time.
There will always be exceptions as each foreclosure case is different. But ignoring one's foreclosure is NOT a good thing to do and one has to ACT because there are alternatives and solutions out there.
