How Will a Foreclosure Affect My Life?

 

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What is Foreclosure?

A foreclosure can happen to a borrower if they are unable to stay on top of their mortgage payments. During a foreclosure, the bank or lender will attempt to gain possession of the home or mortgaged property.  They will then put the property up for sale in order to recover the unpaid balance.

If you have been having trouble paying your mortgage and have fallen behind by several months, you may be in danger of having your lender foreclose upon you. Some people are okay with letting their home go into foreclosure as a way to rid themselves of that particular debt so they can move forward and gain financial stability. By forfeiting their rights as a homeowner, they will then (hopefully) be able to move to more affordable housing, making their monthly payments more reasonable.

What Can Foreclosure do to My Life?

Before letting your house go into foreclosure, it is important to recognize the effects of doing so. It may seem like an easy way out of a mortgage you can no longer afford, but there are some repercussions that may make you want to think twice.

Primarily, a foreclosure on your financial record significantly drops your credit score immediately. In fact, it is possible for your credit score to decrease by up to 300 points! As you know, your credit report and credit score can affect many different aspects of your life, so suddenly a foreclosure has turned into a much more complicated and detrimental situation.

Along with your lowered credit score number comes difficulty securing a rental home because many landlords are now being much more strict about who they rent to. You may also be denied for things like: car loans, insurance (life, rental, car), and even credit cards. More and more employers are now doing credit checks along with background checks, especially if the job in question is in the financial field or has you dealing with money in any capacity. Your existing credit cards and other loans may suddenly bump up your interest rates when they find out about your foreclosure and lowered credit score, because you will be considered more of a “high risk” borrower.

Military personnel and employees may lose their security clearance if there is a foreclosure and other patterns of financial distress noted on their credit report, such as filing for bankruptcy or simply ignoring bills.

Even with all of this information, allowing a property to go into foreclosure can be the best decision for some people. If you have educated yourself regarding the seriousness of a foreclosure and still feel strongly about moving forward with it, just stay as informed as possible throughout the entire process.

What Can I do to Stop the Foreclosure Process?

If the information contained in this article has made you think twice about the far-reaching and long-lasting (up to seven years) effects of foreclosure, you need a good foreclosure defense attorney to help save your home.

An experienced New Jersey foreclosure defense attorney will fight for you during the foreclosure process using legal strategies that will slow down or stop your foreclosure altogether.

The reason why foreclosure defense can be very successful is because most lenders really do not want to take your home away from you. It would be much more beneficial to them if you were to continue paying your mortgage. Although they would very much like to receive your full mortgage amount each month, many lenders/banks are willing to negotiate how much you pay them, while allowing you to KEEP YOUR HOME.

Entering into negotiations with your lender/bank by yourself is not advised. By working closely with your New Jersey foreclosure defense lawyer, you will have someone (with experience on his side) to negotiate for you.

If you are about to lose your home to foreclosure or are already in the middle of a foreclosure process, but don’t want to lose your home, don’t waste another minute. Call our office today and set up your free appointment with George Veitengruber, Esq. He has saved homes from foreclosure for a multitude of clients. Why not let yours be his next success?

Image credit: Lending Memo

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14 Responses to How Will a Foreclosure Affect My Life?

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