If you own your house, one of the most overwhelming potentials you could face is the foreclosure of your property.
If your house is foreclosed on, there are negative consequences that can affect you and your future for years to come. These negative repercussions are certainly intimidating, and your feelings of concern and stress about the dark shadows that come with foreclosure are legitimate. Foreclosing a home comes with long-lasting impacts that you may want to know about before moving forward.
Learn how foreclosure can affect you below.
How Foreclosure Affects You
If you’re facing financial hard times and are struggling to make payments towards your home loan, foreclosure could be your reality. Here are a handful of ways foreclosing your house can impact homeowners.
Your Credit Takes a Serious Hit — If your house is foreclosed, it will negatively impact your credit score and remains on your credit report for years and years (seven, to be exact!). Adverse reports and low credit scores can leave you unable to get consumer credit or qualifying for housing (renting included). In the unlikely event you happen to get approved for a loan or credit card, your interest rates will be shockingly high, which may further worsen your financial situation.
Emotionally and Mentally Tolling — Many homeowners amid foreclosure experience emotional and mental hard times, an often overlooked consequence. Plenty of people in this situation suffer from low self-esteem, self-worth, and a sense of self-pride.
Loss of Equity — Most homeowners work incredibly hard to earn equity in their homes. Sweat equity and smart updates can add thousands and thousands of dollars to your equity, but a foreclosed house can significantly impact that and put all of your hard-earned equity in jeopardy.
Responsible for Deficiency Debt — Properties sold after being foreclosed on will not always sell for market value, and a deficiency debt remains. If your foreclosed-on property sells for less than it’s worth, you may be held responsible for the remaining balance on your loan. Remember that foreclosure does not mean you’re suddenly free of all financial obligations and responsibilities, including your loan.
Future Mortgage Possibilities at Risk — You will probably have difficulty getting a new mortgage after your house is foreclosed. The Federal National Mortgage Association (FNMA), also known as the Fannie Mae program, has guidelines set in place that make securing a new home loan a challenge, which will seriously limit your ability to buy a new property for years.
Is Foreclosure in Your Future? Contact Texas Sell Now Today
If foreclosure is in your future and you want to avoid all of the negative consequences that come with it, contact Texas Sell Now. It is unnecessary to risk your financial future, especially when you can sell your Dallas or Fort Worth property to our professional home buyers. We want to purchase your house in its current condition — no pricey renovations, time-consuming repairs, or tedious cleaning necessary! Contact Texas Sell Now to receive your fair, all-cash offer today.