Going Through A Foreclosure Process? Here Are 4 Ways Foreclosure Can Affect You!

There are several ways that foreclosure can affect you as a homeowner. Often, these effects will reach far into your future by changing how banks and other lenders view you as a borrower.

In many cases, it’s possible to avoid foreclosure, but in others, the best course of action is to face it head-on. 

What Is A Foreclosure Process?

 

The foreclosure process is the term used when a homeowner fails to make their mortgage payments and banks begin the legal processes to take possession of their home. The foreclosure process only comes into motion after homeowners fail to make monthly payments for at least 2 months in a row.

If you are renting your property, you’re still responsible for making your monthly mortgage payments. If you have stopped making your monthly payments, then there’s a good chance that you will be evicted from your home, so it’s important to take action as soon as possible to avoid foreclosure.

It’s not just the payment of your monthly mortgage that can lead to foreclosure. One or more of the following reasons can cause you to be considered for foreclosure:

• Late payment
• Non-payment of your monthly mortgage payments or other fees 
• The debt to income ratio is too high 
• Poor credit score 

4 Foreclosure Consequences

 

1. It Will Damage Your Credit Rating

 

One of the biggest long-term consequences of foreclosure is that it shows up in your credit history and can damage your future ability to get loans and mortgages. Even when you eventually pay off a foreclosure, its negative connotation remains in your credit history for seven years. This can make getting essential things like insurance difficult, and it can even affect your ability to find employment.

2. Your Property Value Will Plummet

 

When you go into foreclosure, your house is typically assigned to a group of investors or lenders that agree to purchase the loan at a discounted rate. These groups then work together to market the property as quickly as possible to avoid further costs. 

Since so many foreclosed properties are sold at auction, this often has the effect of depressing market value for the surrounding homes still on the market – regardless of whether or not they are themselves currently in foreclosure.

3. You Will Lose Your Home

 

Foreclosure means losing your home to a lender that can do what it wants with it. The foreclosure process can seem daunting, but it allows the borrower some control over whether or not they have to leave. 

This means that you may negotiate with your lender to keep your house. There are many options for this, including but not limited to a loan modification, forbearance plan, repayment plan – even a short sale can be a preferable alternative.

4. It Will Make It Harder To Find A Job

 

When you’re applying for a job, employers typically do a background check on you, including searching your credit history. A foreclosure can easily show up here and cause employers to pass over you, even if it’s no fault of your own. While this isn’t true in all cases – it can still be very difficult for those who have faced foreclosure to get a new job.

 

We Can Help You Sell Your House Fast To Avoid Foreclosure

 

We know that the foreclosure process can be confusing and overwhelming. Our goal is to make this experience as easy and stress-free as possible. If you are considering a short sale, we encourage you to contact us today so one of our experienced professionals can offer support and guidance tailored specifically to your unique situation. 

Our team at Home Buyers OKC has helped countless homeowners avoid foreclosure by buying their homes quickly, without any hassle or delays involved on their part. What will work best for you? Give us a call now!

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