Foreclosure is not an enjoyable process. It can have some devastating repercussions on your life long term. It is often extremely stressful and can be hard on any family. It negatively affects your credit which will result in much higher interest rates for future purchases, and may also exclude you from certain employment opportunities. It is often hugely beneficial to understand what you’re up against if you’re facing foreclosure in order to understand how to proceed forward and potentially get ahead of the process. We have compiled a few side effects of the foreclosure process, so you can be better prepared and understand what you may be up against. If you’re currently facing foreclosure in the Atlanta area, skip to the bottom to learn more about how we buy houses for cash, and can help you out!
First, you will be at a much higher credit risk after you have been foreclosed upon. Your credit score will be negatively affected which directly affects future interest rates on other purchases. Lower credit scores affect credit card applications, and home mortgage lenders will ask you for much higher down-payments in addition to charging significantly higher interest rates. It is also possible that some employment opportunities will be denied to you as well. Banking and other employers that require a credit check will likely deny you certain employment if you’ve had a foreclosure in your credit history. Insurance companies also, generally speaking, consider your credit when they quote you an interest rate. This can often mean that your car insurance rates will be much higher if you don’t have insurance already.
Another thing to consider is the loss of equity you have built into your home. If you’ve been living in the home for some time, it is entirely possible for you to have built equity into the home and this is completely lost at the time of foreclosure. If you’ve lived in the house long enough that the property values have grown then that will also make the equity you’ve lost that much higher. This value can be many thousands of dollars in some cases.
Depending on your lender, you can often talk to them prior to the foreclosure process starting to see what options you have for repayment. You can work with the lender to be sure that if there’s any options available, they will offer them to you. Often Lenders choose to work with a borrower rather than foreclose upon the home because it’s less effort for them to help you out. However, if you still end up having the home foreclosed upon, you will have a tough time trying to recover. If your home is foreclosed upon and sold, but this amount does not cover what is still currently owed in the mortgage, then you are required to pay the difference. Also, if you’ve been foreclosed upon and have nowhere to go, you could possibly end up homeless. Landlords often require a credit check prior to allowing someone to rent a home or apartment and a foreclosure will negatively affect your chances to move in.
At Arbor View Properties, we buy houses for cash from homeowners looking to sell a home that is causing nothing but problems. A lot of the time, this could mean foreclosure. Contact us today and see how we can help you out of your home, and onto what’s next!