Foreclosure will definitely have an effect on you. Beyond the clear emotional stress it can bring to your family and relationships, foreclosure can also hit your finances hard. Everything from your clothing to your vehicle, and even your home and job, will feel the impact for many years.
Girl Buys Houses is ready to listen and can help answer any questions you might have about your unique situation and how to steer clear of these negative outcomes. Just give us a call at .
When you understand what’s coming, you’ll be better prepared to take quick action against the harmful effects of foreclosure right from the beginning.
Your future self will appreciate the effort you put into learning about your options during this time. We will discuss 4 different ways foreclosure can affect you in .
4 Ways a Foreclosure Will Impact You in
Denied
Having a foreclosure in appear on your credit reports will cause you to be considered a bad risk. Once this appears in your credit history, it will impact your overall purchasing power. Bad credit often leads to credit applications being denied for credit cards, loans or mortgages. Any financial institution that is willing to approve consumers with bad credit usually charges exorbitant interest and annual fees that those who enjoy good credit avoid. Additionally, it could possibly be a reason you are passed over for employment opportunities.
Financial Loss
Among the top reasons for homeownership, your equity builds up over time as your debt decreases, and property values rise. Your financial gains could be an amount in the hundreds of thousands. Equity is the difference between what your property would bring in the current market, and the amount that is still owed on the mortgage. Depending on your circumstances, a foreclosure will impact your equity either partially or in full, which could be a significant financial loss.
Debt
By taking quick steps to resolve a pending foreclosure, you can make the decisions on how your home is sold and for how much. Open your mail before it’s too late! Keep the lines of communication open so that you can be on top of what actions your lender may be ready to take and how much time you have to change the outcome in your favor. After a foreclosure you’ll have no such control. Should your property sell for less than is still due on your mortgage, you will still be required to make payments on this debt. This is known as a deficiency debt and can have an enormous impact on your lifestyle and family. Not to mention eating into your budget. Additional liability on your credit report will only increase the higher costs associated with having bad credit.
Future Housing
Foreclosure impacts your housing options in many ways. In general, landlords run credit checks as the first step when interviewing tenants. Naturally, your financial history will make you a higher risk and may cause you to be passed over for more desirable properties. Additionally, your choices in financing will be highly restricted should you wish to purchase another home. Fannie Mae is among the largest in the nation and offers a program with several financial benefits. Should you have gone through foreclosure and seek a mortgage lender, you should be aware that Fannie Mae will require a waiting period of 7 years before you will be eligible under their guidelines.
Facing the possibilities of a foreclosure alone can be very stressful and inaction on your part risks your financial future. Don’t wait until foreclosure begins, let Girl Buys Houses help lessen your burdens today. Send us a message.