Stress can cause us to become anxious and act too quickly and unadvisedly. Stress can also cause us to shut down and do nothing. The stress of a possible foreclosure hits us hard yet neither of these responses are good ones. Both options can have long-lasting and far-reaching negative consequences.
Thankfully, the process of foreclosure is a slow process with ample opportunity to avoid it. Homeowners who act promptly, decisively, and wisely will have the most options at their disposal. Prompt wise action will also avoid the most consequences down the road in life.
Even with a looming foreclosure, the future can quickly brighten for homeowners who deal with their stress correctly, investigate their options, and chose the best one. We have some resources here that you may find helpful in dealing with the situation. However, for those people who do not manage the stress properly and allow the slow process to proceed and end in foreclosure, there are at least 5 ways the foreclosure will impact your future
1. Mounds Of Bills
One of the ways a foreclosure of your property in Lancaster will cause problems in your life are the mounds of even more bills it will create for you. From lawyer fees, back taxes owed to Lancaster, to non-payment fees, these bills stack up. Even the process of the foreclosure itself can cause the bills to accumulate more and more, and your financial future grows even more bleak. For more consequences of foreclosure, check out this scary article over at FindLaw.com.
2. Loss Of Equity
All those payments that you were able to make over the years, help pay down what you owed originally. The difference between what you paid off on your loan and what your house is worth now is your equity. It is the money you would walk away with if you could sell your property and pay off the rest of your loan. All those fees mentioned above could quickly make any equity disappear if you do not deal with the situation. The good news is that even if your property in Lancaster is not in great condition, with a good housing market, you potentially could salvage your equity and get more for your property than you owe.
3. Future Credit
A far-reaching and lasting impact of foreclosure in Lancaster is what happens to your credit score and how long that negative impact remains a part of your credit history. This type of negative impact remains in your credit history for up to seven years and impacts your ability to borrow for a future home, vehicles, and life’s needs. If this happens, you can expect to not qualify for some loans and pay higher interest rates for others.
4. Future Homeownership
Getting a new mortgage can be exceedingly difficult if not impossible for the next seven years. The exception to this may be a VA loan or if you have been ill, had a recent divorce, or a job loss. Even in those circumstances, future homeownership after a foreclosure in Lancaster, can be difficult. Once again, the key is doing all you can to avoid the foreclosure while there is still time.
5. Future Employment
As you move forward after a foreclosure, you may find that even getting a job in the future may be more difficult. There has been a real increase in businesses checking the credit scores of potential employees. This is especially true if the job requires a level of security, money handling, or heightened trust due to the nature of the work. You will not be completely unemployable, but this could hinder you from higher-paying jobs, or a job you really want.
Awakened Home Buyers here in Lancaster wants to help you deal with the stress and get on with your life. Do not be afraid or embarrassed to discuss your foreclosure situation with one of our friendly team members. There are no obligations or pressure, and you will feel more control over your situation and less stress because you will know you are taking action with those who can advise you and help. The experienced pros at Awakened Home Buyers want to help you end your foreclosure nightmare today.
We invite you to contact us for a no pressure offer on your property right away.