|
Effects of Foreclosure
These days more homeowners are facing a
tough decision about whether foreclosing is the only option
they have left. Deciding to foreclose on your home will have
implications on your family and your credit for the rest of
your life.
When a homeowner can no longer make payments to a lender for
a home, the lender may repossess a home in the process of
foreclosure, usually with the purpose of reselling it, to
recover the amount owed on the defaulted home. Homeowners
facing foreclosure proceedings will face lasting
implications.
Get Started Now -- Click Here To Learn About How To Avoid
The Foreclosure Process!
A few of the effects of foreclosure are:
1) Your credit scores will be significantly
lowered, sometimes by more than 300 points. This is the
single most devastating mark on your credit report and will
affect all of your future credit possibilities.
2) A foreclosure listed on a credit report
is nearly impossible to have repaired and will most likely
remain a permanent mark on this valuable personal report.
3) Any future application for a mortgage
you apply for will require you to reveal a previous
foreclosure, greatly affecting your mortgage rates.
4) Most employers will also conduct a
credit check. With a huge drop in your credit score due to a
foreclosure, this may also hinder your future employment
opportunities. This is especially true of many government
positions, including military and law enforcement agencies.
5) If your current employer runs a credit
check, then a foreclosure may even put your current position
in jeopardy.
6) In order to recuperate money they did
not receive during a bank sale of the property, a lender may
seek a deficiency judgment against you to obtain the
balance.
7) Depending on your state law, you may be
responsible for deficiencies after the foreclosure for an
undetermined time period, placing you in a prolonged cycle
of continued collections.
8) Your family will have to relocate. This
is always a disturbance for children, marriages, careers,
and other important aspects of your life.
A short
sale process may be the better way out. Click here now to
see if you qualify.
|
