Oh my gosh, wow! House Foreclosure impacts are huge. Foreclosure occurs when, for whatever reason, agreed-to payments for a home mortgage loan are not being made promptly in accordance with the promissory note. The reasons can vary as widely as there are homeowners, from the sudden loss of life from a contributing family member, unexpected loss of income, divorce, or myriad other possibilities. Naturally, it is better to take swift action before things come to this point with the lender, as you are given multiple notifications and chances before this stage to ward off the legal proceedings.
As circumstances have led up to the point of foreclosure, you likely already had several late or missing payments on your payment history, and you have already begun to feel the ill effects of a negative credit score. Sleepless nights may become familiar as the communications from your lender have increased, leading up to the final point of foreclosure. Our imaginations are much worse than reality, so take heart, others have survived foreclosure, and you can as well by knowing what you face and that there is hope and a light at the end of the tunnel. It can set your mind at ease to take a realistic assessment. No matter how you have ended up in this situation, we will discuss 5 ways the foreclosure of your Texas house will impact you.
The first is credit. Lenders hesitate to deal with the risk of a borrower with such a history. These financial penalties will continue for as long as the foreclosure remains on your credit score, a total of seven years. When lenders review your credit score details, the foreclosure of your Texas house will impact you by either facing extremely high-interest rates or flat-out denial of credit. This lingering ill effect means that life will become even more expensive as it is difficult to survive without credit. 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
The financial blows from the court fees and any deficiency from the foreclosure of your Texas house will continue to linger until the debt is satisfied. You are responsible for paying court fees when you go through the foreclosure process in court. Additionally, you will still owe the difference between the amount realized for the property against any remaining debt to the mortgage lender, known as the deficiency.
Sold at an auction, lenders typically accept lower appraisal values and bids for foreclosures. You likely owe penalties in addition to the overdue payments, which will all come from the proceeds. Whatever equity you may have gained over the years is likely about to be gobbled up by fees and penalties, along with a lower sales price. The foreclosure sale tosses everything you have built right out the window. The loss of the home and your equity because of foreclosure of your Texas house will impact you in retirement by depleting what could have been a significant contribution to your golden nest egg.
When you are already experiencing a change in your life from whatever has caused the foreclosure, the foreclosure becomes a looming nightmare. It is difficult to remember when emotionally invested that it is strictly business for everyone else involved. Losing your home and the equity you have built, facing court, and all of the expenses that come with it can have highly detrimental mental effects on yourself and your family. The stress of the unknown date the bank will evict you and where you will go is regrettably one of the most brutal ways the foreclosure of your Texas house will impact you.
Standard of Living
Concerns about the standard of life you now face with your foreclosure history following you for years are valid. Because of foreclosure, life has become even more costly. There are limitations on those with a foreclosure in the past. The red flag of a foreclosure on applications requiring you to experience a credit history search can begin a downward spiral in areas of your life, such as the available housing and higher-paying job opportunities. The job you accept and the area you live in can considerably affect the enjoyment of your day-to-day life and is another way the foreclosure of your Texas house will impact you.
TMC Property Solutions understands how foreclosure of your Texas house will impact you. If you are facing foreclosure, don’t wait until it’s too late. If you are in foreclosure now, let TMC Property Solutions solve your problems. Ask any questions you like, with no obligation, because TMC Property Solutions is here to help you. Give TMC Property Solutions a call/text at (817) 550-5069 Opt# 1 or send us a message!
In Summary, There Are Many Ways Your Texas House Foreclosure Will Impact You. Lets us help before it’s too late!
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