Unfortunately there’s no two ways about it. A foreclosure will absolutely impact you. Besides the obvious strain and emotional impact the situation can have on your family and personal relationships, foreclosure can also devastate your finances. From the clothes you wear to the car you drive, or even where you reside or work, it will have a residual effect on your life for years to come.
We Buy Lancaster Houses is here to listen to you and can address any questions you may have about your specific circumstances and what you can do to avoid these ramifications. Just call 717-715-0010.
By having a better understanding of what lies ahead, you will be better equipped for taking immediate action against the negative consequences of foreclosure from the start.
Your future self will thank you for taking the time to learn more about your options during the process. We’ll cover 4 ways that a foreclosure will impact you in Lancaster.
4 Ways a Foreclosure Will Impact You in Lancaster
Get Used to being Denied
Having a foreclosure in Lancaster appear on your credit reports will cause you to be considered a lending risk by almost every financial institution you try to work with. Once this appears in your credit history, it will impact your overall purchasing power. Bad credit often leads to credit applications being denied for credit cards, loans or mortgages. Any financial institution that is willing to approve consumers with bad credit usually charges HUGE interest rates and annual fees that they don’t charge to folks with good credit. It can even effect employment opportunities depending on what industry you work in.
Financial Loss
Building equity is among the top reasons for homeownership in the United States, and property values rise in Lancaster year over year. Your financial gains could be in the hundreds of thousands of dollars if you handle your property correctly. Equity is the difference between what your property would bring in the current market, and the amount that is still owed on the mortgage. Depending on your circumstances, a foreclosure will impact your equity either partially or in full, which could be a significant financial loss.
Debt
If you’re able to take quick action and avoid the denial stage to resolve a pending foreclosure, you can make the decisions on how your home is sold and for how much. Open your mail before it’s too late! Keep the lines of communication open so that you can be on top of what actions your lender may be ready to take and how much time you have to change the outcome in your favor. After a foreclosure you’ll have ZERO control. In the event your Lancaster property sell for less than is still due on your mortgage, you will still be required to make payments on this debt. This is known as a deficiency debt and can have an enormous impact on your lifestyle and family. Not to mention eating into your budget. Additional liability on your credit report will only increase the higher costs associated with having bad credit.
Future Housing
Foreclosure impacts your housing options in many ways. Most landlords will run credit checks as the first step when interviewing tenants. Naturally, your financial history will make you a higher risk and may cause you to be passed over for more desirable properties. Additionally, your choices in financing will be highly restricted should you wish to purchase another home. Fannie Mae is among the largest in the nation and offers a program with several financial benefits. Should you have gone through foreclosure and seek a mortgage lender, you should be aware that Fannie Mae will require a waiting period of 7 years before you will be eligible under their guidelines.
Facing the possibilities of a Wilmington foreclosure alone can be very stressful, but it’s CRUCIAL that you take action! Don’t risk your financial future by living in denial. The best option is to not wait until foreclosure begins, and instead let We Buy Lancaster Houses help lessen your burdens today. Send us a message or give us a call today at 717-715-0010. All calls are confidential and judgement free! Call now at 717-715-0010.