Foreclosure can impact you in a number of different ways. Besides the obvious difficult situation and negative consequence this can have on your family and other relationships in your life, foreclosure can also severely deplete your finances. It will have a lasting effect on your life not just in the short term but over the long term as well.
Sunny Day Homes LLC is here to listen to you, address any questions you may have about your exact situation, and help you understand what a solution will look like for you. Just call (501) 400-0505.
By having a clearer picture of what is ahead, you will be better prepared for taking massive action to fight against all the things that foreclosure can do to your and your family.
Your future self will thank you for taking the time to learn more about your options during the process. We’ll cover 4 ways that a foreclosure will impact you in Little Rock.
4 Ways a Foreclosure Will Impact You in Little Rock
Having a foreclosure in Little Rock appear on your credit reports will cause you to be seen as “not credible” in the eyes of the credit bureaus. With this mark in your credit history, it will decrease your purchasing power (ability to get lending and borrow capital). As we all know, bad credit prevents you from being approved for credit cards, loans, mortgages, or other lending opportunities. Any financial institution that is willing to approve consumers with bad credit usually charges exorbitant interest and annual fees that those who have good credit are not required to have. In some cases, it could possibly be a reason you are not selected for job opportunities.
Among the top reasons for homeownership, your equity builds up over time as your debt decreases, and Little Rock property values rise. Your financial gains could be an amount in the hundreds of thousands. Equity is the difference between what your property would bring in the current market, and the amount that is still owed on the mortgage. Depending on your circumstances, a foreclosure will impact your equity either partially or in full, which could be a significant financial loss.
By acting with urgency to resolve a pending foreclosure, you have the ability to determine if you want to sell your house. Be sure to keep up on your mail and monitor what is coming in! Keep your communication open so that you can be on top of what your current lender may be ready to take and what timeframe you have to make a move. After a foreclosure you’ll have no such control. Should your Little Rock property sell for less than what you owe on your mortgage, you will still be required to make payments on this debt. This is known as a deficiency debt and severely impact your future lifestyle and the financial choices you are able to make for you and your family. Not to mention the mark on your credit report will only create more cost for you that come along with having bad credit.
Foreclosure impacts your housing options in many ways. In general, property owners and property managers run credit checks as part of their interview process. There is no way to avoid your financial history being seen and this will make you a higher risk in the eyes of the property owner/manager. Additionally, your choices in financing will be almost non-existent if you are looking to purchase another home. Fannie Mae is one of the largest in the nation and they do offer options and programs with financial benefits. If you are a person who have gone through foreclosure and you are looking for a mortgage lender, you should know that Fannie Mae will require a waiting period of 7 years before you will be eligible under their guidelines.
Facing the possibilities of a Little Rock foreclosure alone can be very overwhelming, confusing, and result in the feeling of hopelessness. If you do nothing you are putting your financial future at risk. Don’t wait until foreclosure begins, let Sunny Day Homes LLC help lessen your burdens today. Send us a message or give us a call today at (501) 400-0505.