As a homeowner, one of the most stressful events you could face is a foreclosure on your home, but do you know how foreclosure impacts you?
Many negative repercussions come with foreclosure and, if foreclosure is in your future, you may be feeling overwhelmed with the dark shadows that come with it. The impacts of foreclosure are long-lasting, and understanding the consequences is essential before you move forward.
To learn more about how foreclosure can impact you, continue reading below.
Foreclosure Impacts You in These 5 Ways
If you are in the middle of financial hard times and are a homeowner, foreclosure could be a reality. Here are five ways foreclosure could impact you:
- Your Credit is Hit Hard — Foreclosure negatively impacts your credit score and will remain visible on your credit report for seven years. Lower credit scores or negative reports can disqualify you from getting new housing, in addition to consumer credit. In the unlikely event, you are approved for a credit card or loan, your interest rates will be sky-high, which could worsen your financial situation even more.
- Held Responsible for Deficiency Debt — Properties that have been foreclosed on do not always sell for total market value, leaving a deficiency debt. If your house sells for less money than it’s worth, you could be responsible for the difference or whatever balance is remaining on your mortgage. It’s important to remember that foreclosure does not mean you are free and clear of financial responsibilities, including your mortgage.
- Loss of Equity — For many homeowners, you’ve worked hard to earn equity in your home. Between innovative renovations and putting in the work yourself, the equity you have in your home could be worth thousands and thousands of dollars, if not more. But for those facing foreclosure, the potential of losing that equity is real. If you go into foreclosure, your hefty return on investment could be significantly impacted and could be lost instantly.
- Emotionally and Mentally Straining — One consequence that is sometimes forgotten and rarely talked about when it comes to the negative impacts of foreclosure is the emotional, mental strain it can cause. For many people in this situation, their self-worth, sense of self-pride, and self-esteem can take a severe hit.
- Future Mortgage Opportunities Jeopardized — The Federal National Mortgage Association (FNMA) has guidelines set in place that will prevent you from getting a mortgage after foreclosure for seven years. This is also known as the Fannie Mae program and not being able to secure a new home loan with one of the biggest mortgage lenders in the industry really limits your ability to purchase a new home.
Avoid Foreclosure and Contact Sell Your OKC Home Today
If you want to avoid foreclosure and the intense consequences that come with it, sell your Oklahoma City property to Sell Your OKC Home today. There is no reason to risk your financial future when you can lessen your burdens by selling your house to us. We want to buy your home in its current condition for cash. No need for time-consuming renovations or remodels, expensive repairs, or cleaning. Contact our home buying experts today for your fair, all-cash offer.