Facing foreclosure? Foreclosures will affect you for many years to come and can make your life more difficult even after you are done avoiding phone calls and dreading a walk to the mailbox! (Trust me – I get it and I have been there!!) However, you may still have time to handle this situation. When you learn the time frame and the different steps of foreclosure and compare that with what letters or other communication you have received from your lender, you can determine how quickly you need to move to secure your exit strategy. If you ignore the pending legal action letters, that is no excuse in court. Don’t stick your head in the sand and allow the process to destroy all you have built by not doing anything at all.
If your lender has just begun to issue notices of non-payment, then they have not issued the foreclosure yet. Why wait? Avoid all of the negative impacts of foreclosure by selling to us now. Read on to learn 5 ways foreclosure will impact you in Orlando.
Negative Credit Reports
If foreclosure is looming over you like a black cloud on a sunny day, don’t ignore the rain. A negative credit report due to a foreclosure can impact your ability to acquire new housing and quite possibly impact getting a job in the future or renting the place of your choice. A lower credit score will also often result in being denied consumer credit. Often, if you are approved, the interest will be much higher, only adding to the financial issues you are already facing. Check out more information on credit and tax implications a foreclosure can have: https://www.cesisolutions.org/resources/credit-and-debt-resource-center/consequences-of-foreclosure/#:~:text=According%20to%20FICO%2C%20for%20borrowers,as%20much%20as%20160%20points.&text=Typically%2C%20it%20will%20take%20three,to%20restore%20the%20credit%20score.
Equity is the difference between the current market value of your Orlando home and what is owed to the lender holding the mortgage on your property. As one of the largest investments most of us will make, equity can build up literally into the hundreds of thousands over years, depending on the current trends in real estate. Now, you naturally look forward to reaping the rewards of the equity in your home. Your equity will be impacted severely and can be completely lost to you should you go into foreclosure due to what is owed to the lender, legal fees and other fees and costs the bank will tack on.
The uncertainty of not knowing when you will have to leave your home can lead to sleepless nights and have negative emotional impacts. This can extend out into your work, friends, and even close personal relationships, causing additional strain. Not to mention the embarrassment of being denied housing opportunities due to the foreclosure. Being evicted can be a traumatic experience and not a memory anyone recalls fondly. I will never forget the dreaded feeling when my doorbell used to ring and I was scared it would be someone serving me legal papers from the bank. Or the sickening feeling I would get when the phone would ring and I would send the caller to voicemail thinking it was the bank.
Often homes that go into foreclosure do not realize the full market value in Orlando and this leaves what is known as a deficiency debt. You could still end up being responsible for the remainder of the debt, which is an additional burden on your already stretched resources, along with yet another negative impact on your financial history. This is also stressful beacause you don’t really know if the bank is going to come after that debt or not. Or better yet, when they will come calling for the money they are owed.
Fannie Mae Access
Once you’ve gone through a foreclosure, guidelines in place prohibit you from the ability to get a mortgage through the Fannie Mae program for 7 years. When it comes to the mortgage industry, Fannie Mae is one of the largest mortgage lenders. Loans that are acquired through them provide homeowners several worthwhile benefits. The inability to avail yourself of this program could impact you by limiting the opportunities available to you in the Orlando housing market.
Sell It Now! Quick action is called for when there is an impending foreclosure on your property. The simplest way to avoid all of the negative impacts foreclosure can bring to your life is to nip it in the bud and sell your Orlando home to us.