Effects of Foreclosure

When a homeowner can no longer make payments to a lender, the lender may repossess a home by the process of foreclosure.  (If homeowner has their home up for sale in a short sale situation, it stops the foreclosure process). 

 A foreclosure will have lasting implications.  Click here to Learn How to stop the Foreclosure process

A few of the adverse effects of foreclosure are:

  1. Your credit scores will be significantly lowered, sometimes by more than 300 points.  This is the single most devastating mark on your credit report and will affect all of your future credit possibilities.
  2. A foreclosure listed on a credit report is nearly impossible to have repaired and will most likely remain a permanent mark on this valuable personal report.
  3. Any future application for mortgage you apply for will require you to reveal a previous foreclosure greatly affecting your mortgage rates.
  4. Most employers will also conduct a credit check.  With a huge drop in your credit score due to a foreclosure, this may also hinder your future employment opportunities.   This is especially true of many government positions, including military and law enforcement agencies.
  5. If your current employer runs a credit check, then a foreclosure may even put your current position in jeopardy.
  6. In order to recuperate money they did not receive during a bank sale of the property a lender may seek a deficiency judgment against you to obtain the balance.
  7. Depending on our state law, you may be responsible for deficiencies after the foreclosure for an undetermined time period, placing you in a prolonged cycle of continued collections.

 

A Short Sale Process may be a better way out.

 Do you qualify for a Short Sale? Click here for more info on foreclosure effents in Cape Coral FL