Foreclosure is one of the most overwhelming and stressful events a homeowner can face, and it’s something you’ll want to avoid.
If foreclosure is in your future, you can count on facing major negative repercussions for many years to follow. On top of the strain on your relationships with yourself and others and further emotional and mental consequences, this event can leave you in devastating financial distress.
Find out how foreclosure can impact you and your Salt Lake City home below.
Your Credit Takes a Hit
It negatively impacts your credit score and will remain on your credit report for seven years. A lower credit score or negative credit report can affect your ability to qualify for new housing, as well as being denied consumer credit. In the rare case, you’re approved for a loan or credit card, your interest rates will be out-of-this-world high, which could further worsen your financial situation.
Loss of Hard-Earned Equity
Equity is defined as the monetary difference between your home’s current market value and the amount you currently owe on your mortgage for the property. Since purchasing a house is one of the most significant investments a person will make, a person’s equity can stack up into hundreds of thousands of dollars throughout the years (of course, current real estate trends working in your favor). The idea of obtaining those profits is a naturally exciting thing; however, if you go into foreclosure, your return on investment is significantly impacted and can be lost entirely.
Responsible for Deficiency Debt
Foreclosed homes will not always sell for full market value, leaving what is called a deficiency debt. If your home sells for less than it’s worth, you could still be held responsible for the remaining balance of your mortgage. Please remember that this process doesn’t necessarily mean you’re free and clear of your mortgage-related responsibilities. If you’re in a foreclosure situation, your finances are probably already stretched. Unfortunately, this will be an additional burden and can further hurt your credit and financial situation.
Future Mortgage Opportunities Lost
After a foreclosure, guidelines set in place prevent you from being able to obtain a mortgage through the Federal National Mortgage Association (FNMA), also known as the Fannie Mae program, for seven years. The inability to access a loan through one of the biggest mortgage lenders in the mortgage industry could seriously limit your chances of securing a new home loan. You must wait seven years before you’re eligible for a loan according to Fanny Mae’s guidelines.
Contact Utah Sell Now
Avoid foreclosure and its intense ramifications and sell your Salt Lake City, Utah, home to Utah Sell Now. There’s no sense in risking your financial future when you can lessen your burdens by selling your home to us. We’re ready to make you a fair, all-cash offer for your house in its current condition. That’s right! No renovations, no remodels, or cleaning necessary. Contact our experts for your cash offer today.