The wheels that drive foreclosures 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 weren’t fully informed of the consequences and took no action to prevent the process.
Regardless of the reasons behind the changing circumstances leading to a potential loss of a home, proactive homeowners hold the key to shaping their future. Even as correspondence from the lender starts to flood in, there remains a window to engage with the lender and explore options for a mutually beneficial resolution.
The road ahead will be difficult 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 Florida house will impact you in the future.
Costly
One of the ways the foreclosure of your Florida 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.
Lose Equity
Another way the foreclosure of your Florida 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. Lenders will continue to add both penalties and accrued interest during the time your house is going through the foreclosure process. The lender hires an attorney or law firm to handle the foreclosure process when your house goes into Foreclosure in Fort Myers. The attorney fees can add thousands of dollars to what is owed to the lender or bank. There are also lots of other costs associated with the foreclosure process that eat away at any equity left in the value of your house. There are filing fees, court costs, mailing and overnight costs all building up during the foreclosure process. In the end, if you are unable to reach an agreement with your lender sooner rather than later all of the equity you had built up will be eaten away by costs and fees. Additionally, lenders typically go with the lowest appraisal value, further depleting the level of any remaining equity. This loss of equity during the foreclosure process is a good reason to work with a local, trusted home buyer in Fort Myers such as our company. The earlier in the foreclosure process the more money you will walk away at closing when you sell your Fort Myers house for cash to our company.
Future Credit
Experiencing foreclosure on your property in Florida can have a significant immediate impact, especially on your credit score. Although the foreclosure will remain on your credit report for seven years, it is not a permanent blemish. However, during this period, obtaining credit may come with higher interest rates, ultimately increasing your financial burden. Rebuilding your credit is crucial for improving your creditworthiness and taking charge of your financial well-being for the future.
Future Homeownership
Qualifying for a mortgage will be 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 Florida 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.
Future Employment
With the increasing trend of employers conducting credit checks to identify high-performing employees, the potential impact of a foreclosure on your Florida residence extends to your future employment prospects. If you find yourself in this scenario, focusing on credit repair can significantly benefit you. While not all job opportunities may be off-limits, roles involving financial responsibilities or customer data handling are more likely to hinge on your credit status when assessing your suitability for the position.
Sell My House Now USA is here to help. Discuss the impending foreclosure of your Florida house with the direct buyers at Sell My House Now USA without any obligations. The experienced pros at Sell My House Now USA want to help you end your foreclosure nightmare today. Call Sell My House Now USA at (239) 360-3176 or send us a message to learn more.