There is no doubt foreclosure will affect you. Foreclosure can also devastate your finances. The obvious strain and emotional impact the situation can have on your family and personal relationships. From the clothes you wear to the car you drive, or even where you reside or work, it will have a residual effect on your life for years to come.
Mrs. Property Solutions 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. Just call (310) 658-8252.
From the start you will be better equipped for taking immediate action against the negative consequences of foreclosure by having a better understanding of what lies ahead.
Your future self will thank you for taking the time to learn about your options during the process. Here are 4 ways that a foreclosure will impact you in Los Angeles.
4 Ways a Foreclosure Will Impact You in Los Angeles
Having a foreclosure in Los Angeles appear on your credit reports will cause you to be considered a bad risk. Bad credit often leads to credit applications being denied for credit cards, loans or mortgages.
Once this appears in your credit history, it will affect your overall purchasing power. Financial institutions that are willing to approve consumers with bad credit usually charge excessive interest and annual fees that those who enjoy good credit avoid. In Addition, it could possibly be a reason you are passed over for employment opportunities.
Among the top reasons for homeownership, your equity builds up over time as your debt decreases, and Los Angeles property values rise. Equity is the difference between what your property would bring in the current market, and the amount that is still owed on the mortgage.Your financial gains could be an amount in the hundreds of thousands. Foreclosure will impact your equity either partially or in full, depending on your circumstances which could be a significant financial loss.
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 take and how much time to change the outcome in your favor. After a foreclosure you’ll have no such control. Should your Los Angeles property sell for less than is still due on your mortgage, you are still required to pay your debts. A deficiency debt can have an enormous impact on your lifestyle and family, not to mention eating into your budget. Additional liability on your credit report will increase the higher costs associated with having bad credit.
In many ways, foreclosure affects your housing options. Generally, landlords run credit checks as the first step when interviewing tenants. It is natural that your financial history will make a higher risk and may cause you to be passed over for more desirable properties. In addition, your choices in financing will be highly restricted when you wish to purchase another home. Should you have gone through foreclosure and seek a mortgage lender, Fannie Mae is among the largest in the nation and offers a program with several financial benefits. You should be aware that Fannie Mae will require a waiting period of 7 years before you will be eligible under their guidelines. Facing the possibilities of a Los Angeles foreclosure alone can be very stressful and inaction on your part risks your financial future. Don’t wait until foreclosure begins. Send us a message or give us a call today at (310) 658-8252. Let Mrs. Property Solutions help lessen your burdens today.