5 Ways Foreclosure Will Impact You in Houston

 

Are you confronting the possibility of foreclosure? It's critical to understand that foreclosures can have long-term consequences, potentially damaging your life for years to come. However, you may still have the opportunity to address this situation before it's too late. By familiarizing yourself with the timeline and various stages of foreclosure and reviewing any correspondence from your lender, you can determine how quickly you need to take action to safeguard your exit strategy. Ignoring legal notices and other communications from your lender will not excuse you in court. Instead of burying your head in the sand, take proactive measures to avoid reaching a point of no return and losing all that you've worked hard to achieve.

If your lender has only started sending non-payment notifications, foreclosure proceedings haven't begun yet. So why wait? Avoid the adverse consequences of foreclosure by selling your property to us now. Keep reading to discover five ways that foreclosure could affect you in Houston.

Negative Credit Reports

If you're facing the threat of foreclosure, it's essential not to ignore the situation. Foreclosure can cast a dark shadow over your credit report, making it difficult to obtain new housing and potentially hindering your employment opportunities in the future. A lower credit score can also result in being denied access to consumer credit, and if approved, you may face exorbitant interest rates that compound the financial challenges you're already experiencing.

Lost Equity

Equity is the difference between the current market value of your Houston 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. This return on your investment will be impacted severely and is usually completely lost to you should you go into foreclosure. 

Stress

The ambiguity of not knowing when you'll be forced to vacate your home can result in restless nights and detrimental emotional effects. These consequences can ripple out to your professional life, relationships with friends and loved ones, and cause additional stress. Furthermore, being denied housing opportunities due to a foreclosure can be a source of shame and embarrassment. Facing eviction can also be a traumatic experience that no one would want to remember fondly.

Deficiency Debt

Frequently, properties that undergo foreclosure in Houston do not achieve their full market value, leading to a deficiency debt. You may still be held accountable for the remaining debt, further straining your already limited resources and creating another adverse effect on your financial record.

Fannie Mae Access

After experiencing foreclosure, guidelines dictate that you are unable to obtain a mortgage through the Fannie Mae program for seven years. Fannie Mae is one of the biggest mortgage lenders in the industry, and loans obtained through them provide homeowners with numerous advantages. The inability to access this program could limit your options in the Houston housing market and impact your prospects for obtaining suitable housing.

Act now! When faced with the prospect of impending foreclosure, prompt action is essential. The easiest way to prevent the adverse consequences of foreclosure is to sell your Houston property to us and avoid it altogether.

Don't wait, contact Houston Area Home Cash Buyers now at (281) 645-9597 or send us a message to discuss the process and alleviate your concerns. We will guide you through how foreclosure could affect you and provide solutions to mitigate its impact. Sleep soundly tonight by taking action today.