The wheels that drive foreclosure turn very slowly, and there is ample opportunity to steer the ship in a new direction and salvage your future. Sadly, foreclosure is entirely avoidable, yet lives are often damaged for years because homeowners didn’t understand the consequences and took no action to prevent the process.
Whatever circumstances change to create the situation, homeowners who take steps to bypass the inevitable loss of the home will have the most control over their future. As the letters from the lender begin to arrive, there is still time to reach out to the lender and attempt to work towards an amicable solution.
One thing we can guarantee is that it’ll a difficult road ahead for those who choose to keep their heads in the sand and wait for the lender to foreclose. Read on as we discuss five ways the foreclosure of your Louisville house will impact you in the future.
Costly
One of the ways the foreclosure of your Louisville house will impact you is the expense; your attorney will charge thousands, not to mention any fees that accumulate on the mortgage loan or from the process of foreclosure itself, which can be substantial as well. Therefore, allowing your home to fall into foreclosure is a procedure that is costly not only to you as the homeowner but to the lender, the local government, and local property owners. This is why waiting around can be a terrible decision in the long run.
Lose Equity
Another way the foreclosure of your Louisville house will impact you in the future is by the loss of equity. As homeowners pay down their mortgage balance, the difference in the amount owed and the home’s current market value is known as equity. As the fees and costs of the foreclosure add up, the equity you’ve built over the years will slowly begin to drop further and further. Additionally, lenders typically go with the lowest appraisal value, further depleting the level of any remaining equity. This loss of equity can make a huge negative impact on a homeowner, especially when it comes to trying to sell the house.
Future Credit
One of the most immediate impacts of the foreclosure of your Louisville house is the effect it will have on your credit. While it won’t last forever, your foreclosure will be on your credit report for at LEAST seven years. While not impossible to acquire credit with this red mark on your records, rest assured you will pay much higher interest rates as a penalty, making life even more expensive as a consequence. However, it will help your creditworthiness as you work towards rebuilding your credit and regain control of your financial future.
Future Homeownership
After a foreclosure on your record, qualifying for a mortgage will be quite difficult. Under several government programs, it will be impossible for the next seven years; if you qualify for VA loans, the period may be as short as two years following the foreclosure of your Louisville house. There are, however, some extenuating circumstances, such as illness, divorce, or job loss, that will allow these lenders to work with you, so don’t put your head in the sand again; reach out and take charge of your future. Foreclosure isn’t a death sentence and with the proper actions taken, you can pull yourself out of that slump.
Future Employment
As more employers run credit checks in the attempt to find more productive workers, your future employment opportunities has become another one of the ways the foreclosure of your Louisville house will impact you. If you are in this situation, concentrating on credit repair will work in your favor. Although it doesn’t make every job impossible, your ability to be hired is more dependent on your creditworthiness if the job requires you to handle money or customers’ financial data.
Shane Adams Real Estate is here to help. Discuss the impending foreclosure of your Louisville house with the direct buyers at Shane Adams Real Estate without any obligations. The experienced pros at Shane Adams Real Estate want to help you end your foreclosure nightmare today. Call Shane Adams Real Estate at (812) 920-0516 or send us a message to learn more.