Concerned about foreclosure? While many will be ringing in 2021 with New Year celebrations, those who are in forbearance due to loss of income caused by the pandemic will see their Fannie Mae or Freddie Mac program end. This looming deadline brings a heightened sense of urgency for homeowners who have been struggling to make ends meet. Without a certain solution to their financial woes, an immediate response to alleviate the impending loss of their home on their own terms is the wisest course of action. Educating yourself on your options can help you focus your efforts on recovering what you can from the property and avoiding the long-reaching consequences of foreclosure.
By working with a professional buyer you can rely on, you will have a guaranteed closing date and will not have to worry about dealing with inexperienced cash buyers, who often back out of deals at the last minute or cannot qualify for financing after holding up your sale. This provides a sense of security and peace of mind during an otherwise stressful time. Taking proactive steps to sell your home before foreclosure can help preserve your credit and provide you with the financial resources to start fresh. Without doing what it takes to ward off the proceedings, here is what the end of the foreclosure moratorium may mean for homeowners in Fort Myers.
Dealing With Foreclosure in Fort Myers
This is not the time to stick your head in the sand! Homeowners will begin to receive notifications from their lenders, signaling the start of a potentially devastating process. Typically, there is a period during which the homeowner can bring their mortgage payments current, but time is of the essence. According to the Joint Economic Committee of Congress, the average foreclosure has a total cost of nearly $80,000, which includes the lender’s loss and approximately $7,200 in costs to the homeowner. Given the complexity and potential legal ramifications, you may need an attorney, especially as fees for legal assistance in foreclosure proceedings can vary. Many attorneys offer a flat fee arrangement, ranging from $1,500 to $4,000, with additional charges for itemized expenses such as court costs, postage, and travel.
As the foreclosure moratorium ends, homeowners in Fort Myers may face further indebtedness, exacerbating their already strained financial situations. This is a critical moment to seek professional advice and explore all available options to avoid the severe consequences of foreclosure. By consulting with experts and understanding the intricacies of foreclosure laws and procedures, homeowners can make informed decisions that could potentially save their homes and financial futures. Whether it’s negotiating with lenders, considering a short sale, or exploring loan modification programs, taking proactive steps now can make a significant difference. Don’t wait until it’s too late—act now to protect your home and your financial stability.
Financial Loss
As the foreclosure moratorium comes to an end, homeowners in Fort Myers face significant financial challenges. The past-due payments on their mortgages will have been added to the loan balance, but there will be no further acceptable delays on the subsequent monthly payments. This means that without life-changing circumstances, such as returning to work or finding new employment, many homeowners may risk losing their homes. Given that a home is typically the largest investment a person makes, losing it can mean a substantial loss of equity built over time. The emotional and financial impact of such a loss can be devastating for families.
Moreover, the financial repercussions of a foreclosure extend beyond the immediate loss of property. Homeowners may still owe the difference between the amount the property was sold for and the remaining mortgage debt, known as a deficiency. This additional debt can further strain financial resources and prolong the period of economic hardship. A foreclosure will also leave a lasting mark on one’s credit report, remaining there for a period of seven years. During this time, higher interest rates will apply to any credit one does qualify for, increasing the overall cost of living and making it more difficult to recover financially.
The consequences of a foreclosure can also extend into other areas of life, such as employment. In some cases, potential employers may review credit history as part of their hiring process, and a foreclosure can negatively impact one’s chances of securing a job. This creates a vicious cycle where the financial difficulties caused by foreclosure make it harder to improve one’s situation through new employment opportunities. Therefore, the end of the foreclosure moratorium presents a critical juncture for many homeowners in Fort Myers, who must navigate these complex and challenging circumstances to protect their financial futures.
Moving Expenses
The end of the foreclosure moratorium may mean eviction for homeowners in Fort Myers. As the process moves forward, leading to the final step in the foreclosure process, the new owner takes possession. An eviction process will be carried out, eventually leading to the homeowners receiving notice of when the possession will take place, and the property must be vacated. This time period can vary, from three to 30 days. Then you will be faced with the expenses of moving as a renter. you will need funds for deposits and utilities and everything involved in starting over in a new residence. Do not delay, if there is no resolution to your financial situation in sight, you may want to consider selling your house now. Likewise, you may pay more for rent or may even experience issues in being accepted as a tenant. Experiencing the loss of your home in foreclosure and the eventual eviction that follows is emotionally draining in addition to the negative financial aspect. If you don’t plan your life, others will do it for you, so the time to act is now!
The end of the foreclosure moratorium may mean enduring painful financial loss, watching your credit be destroyed, paying for an unsought relocation, and additional debt for homeowners in Fort Myers. Through either a traditional listing with a real estate agent or selling on your own, there is no guaranteed closing date or even if the home will sell. When you consider both the immediate and long term costs, it may be worth selling now at a lower rate than the traditional market, to guarantee your closing date and protect your future. On January 1, 2021, your monthly mortgage payments will be due again and banks will start foreclosing – sell now to Sell My House Now USA and avoid the loss of your home and all of the hidden costs of foreclosures. We’re happy to answer any questions or concerns you may have. To learn more about us, what we can offer, and what the foreclosure moratorium may mean for you, send us a message or give us a call today at (239) 360-3176.