When mortgage payments are not made in a timely and consistent manner then foreclosure could be inevitable. Regardless as to why payments have not been made, the bank will eventually foreclose. Perhaps the household lost a financially contributing family member, unexpected loss of income, or variety of other possibilities. Before getting to this point, it is best to act quickly towards correcting your situation with the lender. You have likely been given multiple notifications and opportunities before this stage to prevent the foreclosure.
It’s very likely that if you find yourself facing foreclosure, you have had many missed or late mortgage payments on your history, resulting in a drop in your credit score. As your lender starts calling and sending letters and an increased frequency, you will find yourself experiencing many sleepless nights on the wya to the final point of foreclosure. Even though a foreclosure can be devastating to your credit, others have survived foreclosure, and you can as well. Do not let your imagination run wild. Instead, take a realistic assessment of your situation. No matter how you have ended up in this situation, we will discuss five ways the foreclosure of your San Antonio house will impact you.
Lenders will likely not want to deal with you with a foreclosure on your history since you pose a significant risk to them. Such penalties stay with you as long as the foreclosure remains on your credit score – which is seven years. With a foreclosure of your San Antonio house on your credit score, you will either face an extremely high interest rate, or you may get denied completely when applying for credit. It is difficult to survive without credit, and the lingering effects of the foreclosure will make life more expensive for you. Sadly, the higher your credit score, the more impact a foreclosure has on the new score. Typically a three-year period with timely payments will clear your credit history of the foreclosure.
Fees and Deficiency Payments
Foreclosure is expensive. You will continue to experience financial blows from the court fees and any deficiency from the foreclosure of your San Antonio house until the debt is satisfied. Also, you will have to pay the court fees when you go through the foreclosure process in court. You will also still have to pay the deficiency, or the difference between the amount realized for the property and the debt remaining to the mortgage lender, known as the deficiency.
When foreclosure houses are sold at an auction, the lender will often accept lower appraisal values and bids. If you have any equity in the property, you will likely see a good amount of it, if not all of it, get gobbled up by the penalties, the many fees and the low sales price. Everything you have worked hard for with the property just disappears with the foreclosure sale. The loss of the home and your equity because of foreclosure of your San Antonio house will impact you in retirement by having depleted what could have been a significant contribution to your golden nest egg.
You are likely in a stressful place having not been able to make your mortgage payments, whatever change caused that to happen. But, even more stress will get piled on with looming nightmare of a foreclosure. Even though you are emotionally invested in this unfortunate procedure, it is business for everyone else involved. The effects of losing your home to the bank, all your equity, going to court and all the other ill effects of a foreclosure, will have a devastating effect on you and your family. As an added stress, you will not know for certain when the bank will evict you. This is definitely one of the most brutal ways the foreclosure of your San Antonio house will impact you.
Standard of Living
You fears of how your standard of living will be affected by the foreclosure in the years following are completely valid. The foreclosure will make everything in life more expensive. The red flag on your credit report means that there will be many limitations for you due to the foreclosure in your past. Such an experience with the rising costs of life and a constant denial on credit applications can create a downward spiral in areas of your life. You may be forced to live in whatever housing is available and may not even be able to find a higher paying job. The job you accept and the area you live in can have a considerable effect on the enjoyment of your day-to-day life and is another way the foreclosure of your San Antonio house will impact you.
Big Buck Home Buyers is well aware of the impact a foreclosure of your San Antonio house will have on you. If you are facing foreclosure or have reason to believe that you may in the coming months, don’t wait until it’s too late. If you are in foreclosure now, let Big Buck Home Buyers solve your problems. Ask any questions you like, with no obligation because Big Buck Home Buyers is here to help you. Give Big Buck Home Buyers a call right now at (210) 920-5280 or send us a message!~