Don’t Let the Long-Lasting Consequences of Foreclosure Keep You From Moving Forward
The Consequences of Foreclosure
A foreclosure is something no homeowner ever wants to have to go through, yet this process is much more common than you might think. In fact, a recent report shows that in the first quarter of 2021 alone, as many as 33,699 properties in the U.S. had foreclosure filings against them. But what is a foreclosure, exactly?
Foreclosure occurs when a homeowner has failed to make mortgage payments, or has defaulted on or violated the terms of their mortgage loan, which triggers a legal proceeding that allows lenders to recover the amount owed on a loan in default. Foreclosure then results in numerous consequences that can negatively impact an individual’s credit and overall financial well-being. Keep reading to learn more about the consequences of a foreclosure, and if you’re facing foreclosure, contact EZ Short Sales to explore your options to stop this process.
Eviction
Probably one of the scariest consequences of a foreclosure is being evicted from your home. Whether you’ve lived in your home for a few months or a few decades, nothing is quite as unnerving as having your home that you’ve put so much care, energy, and love into taken away from you. As an added consequence, you not only lose your home, but also any equity you may have built up over time. Not only that, but the process of being evicted causes an extreme amount of stress and uncertainty in not knowing when you will be forced to leave your home or where you will go after the fact.
Credit Damage
One long-lasting consequence of foreclosure is its damaging impact on your credit score. Along with making a negative mark on your credit report and remaining on your credit history for seven years, a foreclosure will drop your score as well — sometimes significantly. This can have a huge impact on your purchasing power, your ability to buy or even rent a home, and can even affect your employment.
Deficiency Balance
To make matters worse, you could end up owing what’s called a deficiency balance on your home after a foreclosure sale. This happens when the property value (the value that your property is sold for after foreclosure) doesn’t quite cover the amount owed on your outstanding debt. If there is a deficiency balance due, lenders have a legal right to action to reclaim the amount remaining on the debt, which can put you even further into the hole, and harder to dig out of a foreclosure.
Lose Relocation Assistance
To add insult to injury, a foreclosure may also result in the loss of relocation assistance making it harder to find a new place to live. Not only that, but the emotional toll that comes along with the struggle of losing potential leasing opportunities after a foreclosure is tremendous.
These are just some of the consequences associated with foreclosure, however, these are avoidable and there is hope. If you’re facing foreclosure, don’t go at it alone. Rather, contact EZ Short Sales to meet with a short sale specialist, or talk to a foreclosure attorney. We’re here to help you and we’re armed with decades of experience, a variety of solutions, and a winning team to stop foreclosure and keep you moving forward. Get started today!