When facing the slow-turning wheels of foreclosure, there is a window of opportunity to change course and secure your future. Fortunately, foreclosure is entirely avoidable, yet many lives suffer long-term consequences due to lack of awareness and inaction by homeowners.
Regardless of the circumstances leading to this point, proactive homeowners can still reclaim control and steer clear of losing their home permanently. Upon receiving notices from the lender, reaching out for a constructive dialogue remains a viable option to seek a mutually beneficial resolution.
The road ahead will be difficult for those who choose to keep their heads in the sand and wait for the lender to foreclose. Read on as we discuss five ways the foreclosure of your Tennessee house will impact you in the future.
Costly
One of the ways the foreclosure of your Tennessee house will impact you is the expense; your attorney will charge thousands, not to mention any fees that accumulate on the mortgage loan or from the process of foreclosure itself, which can be substantial as well. Therefore, allowing your home to fall into foreclosure is a procedure that is costly not only to you as the homeowner but to the lender, the local government, and local property owners.
Lose Equity
When facing foreclosure in Tennessee, one critical aspect to consider is the impact on your equity. Equity represents the difference between your outstanding mortgage balance and the current market value of your home. Unfortunately, the expenses associated with foreclosure can erode this equity that you have diligently built over the years. Lenders often base their calculations on the lowest appraisal value, accelerating the decline of any remaining equity.
Future Credit
When facing foreclosure in Tennessee, one of the most pressing concerns is its impact on your credit. Although the effects are not permanent, a foreclosure can linger on your credit report for up to seven years. While obtaining credit after a foreclosure is challenging, it is possible. However, be prepared for significantly higher interest rates, increasing the overall cost of borrowing. Taking proactive steps to rebuild your credit is crucial for enhancing your creditworthiness and taking charge of your financial well-being.
Future Home Ownership
Qualifying for a mortgage will be difficult. Under several government programs, it will be impossible for the next seven years; if you qualify for VA loans, the period may be as short as two years following the foreclosure of your Tennessee house. There are, however, some extenuating circumstances, such as illness, divorce, or job loss, that will allow these lenders to work with you, so don’t put your head in the sand again; reach out and take charge of your future.
Future Employment
Employers are increasingly conducting credit checks to identify productive workers, making the foreclosure of your Tennessee residence a potential obstacle to your future employment opportunities. If you find yourself in this scenario, focusing on credit repair can significantly benefit you. While not all jobs are out of reach, positions involving financial responsibilities or customer data may place more emphasis on your creditworthiness when considering your candidacy.
Premise Home Solutions is here to help. Discuss the impending foreclosure of your Tennessee house with the direct buyers at Premise Home Solutions without any obligations. The experienced pros at Premise Home Solutions want to help you end your foreclosure nightmare today. Call Premise Home Solutions at 423-331-6110 or send us a message to learn more.