Foreclosure is the worst-case scenario for homeowners. It occurs when, despite your best efforts to make timely and consistent payments with a lender, they still take legal action against you before things get too far out of hand. Naturally it’s much better to have an open dialogue with them as soon as possible after noticing that missed or late payment in order to nip this problem in the bud because once foreclosure starts proceedings will be put into place which may result in repossession – not so great if you’re just looking at selling your home quickly!
As circumstances have led up to the point of foreclosure, likely, you had already had several late or missing payments on your 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 five ways the foreclosure of your Kansas City house will impact you.
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 Kansas City house will impact you by either facing extremely high-interest rates or flat-out denial of credit.
It is difficult to survive without credit. Sadly, the higher your score in life, the more impact that a foreclosure has on it. For example: if you have good credit before being foreclosed upon then three years with timely payments will clear up this issue and make sure no one knows about what happened at all.
2. Deficiency Payments
The financial blows from the court fees and any deficiency from the foreclosure of your Kansas City house will continue to linger until the debt is satisfied. When you go through the foreclosure process in court, you are responsible for paying court fees. 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.
3. Loss of Equity
Sold at an auction, lenders typically accept lower appraisal values and bids for foreclosures. You likely owe penalties in addition to the overdue payments, and this 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 low 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 Kansas City house will impact you in retirement by having depleted 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 to take place, it can be difficult to remember that is strictly business for everyone involved. Losing your home and equity built up over time, facing court expenses all of these things have lasting effects on yourself and those whom you care about most. 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 Kansas City house will impact you.
5. Standard of Living
The consequences of a foreclosure could be the difference between living comfortably and struggling to get by. The worst part about this event is that it will follow you for years, affecting your life in ways like limited opportunities when applying for jobs or lack of available housing options. The job you accept and the area you live in can have a considerable effect on the enjoyment of your day-to-day life and is another way the foreclosure of your Kansas City house will impact you.
Phenomenal Properties KC Can Help
Phenomenal Properties KC understands all of the ways that foreclosure of your Kansas City house will impact you. If you are facing foreclosure, don’t wait until it’s too late. If you are in foreclosure now, let Phenomenal Properties KC solve your problems.