There is no doubt foreclosure will impact you. As much as we don’t want it to happen and we distract ourselves from that oncoming train, its going to hit us. Besides the obvious strain and emotional impact the situation can have on your family and personal relationships, foreclosure can also devastate your finances. From the clothes you wear, to the car you drive, or even where you reside or work, it will have long lasting effects on your life for decades to come.
Next Door Properties 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. We are only a phone call away 860-704-9513. Even if it’s only to to get things off your chest.
By having a better understanding of what lies ahead, you will be better equipped for taking immediate action against the negative consequences of foreclosure from the start. Like being dropped on a island to fight for your survival we are trying to give you enough tools so you have a fighting chance against the threat of foreclosure.
I know its hard to see right now, but your future self will thank you for taking the time to learn more about your options during the process. We’ll cover 4 devastating ways that a foreclosure will impact you in Connecticut.
4 Ways a Foreclosure Will Impact You in Connecticut
Denied
Having a foreclosure in Connecticut 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. 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.
Over the years I noticed that when I applied for jobs more and more started adding credit checks to their background checks. I divorce in my past hurt my credit and I ended up missing a few payments on some credit cards and one month late on my mortgage. I took over 7 years for all of that to come off my record. During that time I lost over 200 points from my credit score. It was hard for me to get a loan for a house or to replace my card. I still drive the same 2007 Dodge Charger because I’ve gotten used to it and in only the last few years my score was good enough to have a low interest rate to get a house. And all that happened from a few small dings. I can’t imaging what my life would be like if I had a foreclosure. It’s one of the reasons I do this work. To help people have a better chance at a future.
Financial Loss
Among the top reasons for homeownership, your equity builds up over time as your debt decreases, and Connecticut 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.
If my credit was good and I bought a house soon after that house would have doubled or even tripled in value since then. I would have had over 50 to 60% equity which is a nice safety net to have if times are tough. I could even sell the house and move someplace smaller. There are so many options that I COULD have had. Don’t fall into a trap of only getting stuck going down one road to nowhere.
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. Open your mail before it’s too late! Keep the lines of communication open so that you can be on top of what actions your lender may be ready to take and how much time you have to change the outcome in your favor. After a foreclosure you’ll have no such control. Should your Connecticut 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 eating into your budget. Additional liability on your credit report will only increase the higher costs associated with having bad credit.
You don’t want to still be paying for a house you don’t live it and someone else owns. It’s an insult to your injury.
Future Housing
Foreclosure impacts your housing options in many ways. In general, landlords run credit checks as the first step when interviewing tenants. They can deny anyone based on their credit score and financial history. If you couldn’t make mortgage payments what would they think about your ability to pay rent or even affording the security deposit. 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.
Many people and their families in Connecticut end up homeless because they were foreclosure on
Facing the possibilities of a Connecticut foreclosure alone can be very stressful and inaction on your part risks your financial future. Don’t wait until foreclosure begins, let Next Door Properties help lessen your burdens today. Send us a message or give us a call today at 860-704-9513.