Foreclosure is a situation that has direct emotional and psychological impact on people and their families.It can destroy relationships, at least create tensions and stress, and has a negative impact on your credit score affecting your life for years to come.
Dolfin RGV is here to listen to you and can address any questions you may have about your specific circumstances and what you can do to avoid these ramifications. Just call (956) 904 5234.
Educating yourself about foreclosure will help you take immediate action against the negative consequences of foreclosure from the begining. It is important to learn ahead about some options you have and take an educated decision and not wait to the last moment.
We will explain 4 ways that a foreclosure will impact you in McAllen.
4 Ways a Foreclosure Will Impact You in McAllen
Denied credit
Having a foreclosure in McAllen appear on your credit reports will cause you to be considered a bad risk. Once this appears in your credit history, it will impact your overall purchasing power and it will usually stay on your record for 8-10 years. Bad credit often leads to credit applications being denied for credit cards, loans or mortgages. Any financial institution that is willing to approve consumers with bad credit usually charges exorbitant interest and annual fees that those who enjoy good credit avoid. Additionally, it could possibly be a reason you are passed over for employment opportunities.
Financial Impact
Among the top reasons for homeownership, your equity builds up over time as your debt decreases, and McAllen 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.
Increase Debt
By taking quick steps to resolve a pending foreclosure, you can make the decisions on how your home is sold and for how much. You need to open all those letters piling up before it’s too late! Keep the lines of communication so that you can be on top of what actions your bank is ready to take and how much time you have left to negotiate. After a foreclosure you’ll have no such control. Should your McAllen property sell for less than is still due on your mortgage, you will still be required to make payments on this debt. This is known as a deficiency debt and can have an enormous impact on your lifestyle and family. Not to mention affecting your budget. Additional liability on your credit report will only increase the higher costs associated with having bad credit.
Future housing Implications
Foreclosure impacts your housing options in many ways. In general, landlords run credit checks as the first step when interviewing tenants. Naturally, your financial history will make you a higher risk and may cause you to be passed over for more desirable properties. Additionally, your choices in financing will be highly restricted should you wish to purchase another home. Fannie Mae is among the largest in the nation and offers a program with several financial benefits. Should you have gone through foreclosure and seek a mortgage lender, you should be aware that Fannie Mae will require a waiting period of 7 years before you will be eligible under their guidelines.
Facing the possibilities of a McAllen foreclosure alone can be very stressful and inaction on your part risks your financial future. Don’t wait until foreclosure begins, let Dolfin RGV help lessen your burdens today. Send us a message or give us a call today at (956) 904 5234.