Is your mortgage in default, but you are trying to fight foreclosure? It takes endurance, drive and focus. Sometimes homeowners wonder if it is worth the fight. Only you can decide whether keeping the home makes more sense than letting the lender take back the property to satisfy the debt, if that even really satisfies the debt. Rules very by state, but here are some of the consequences of foreclosure that you should be aware of while you are making decisions.
- Eviction from your home. Once the bank or lender completes the foreclosure, they intend to sell the property to attempt to recoup their losses. That means you will need to move out of the home, once you receive the eviction notice, which is usually plastered to your front door.
- Your credit will be damaged, affecting your ability to get new housing, even if it’s rental housing. Other credit and even potential employment may be affected for years.
- You may owe a deficiency balance after the foreclosure sale. States vary in this regard, but if you have not filed for bankruptcy protection including the mortgage debt, you may be on the hook for the post auction mortgage loan balance even though you no longer have the house.
- Relocation assistance or leasing opportunities that banks offer are usually pulled off the table if they go through with entire foreclosure process.
- It will be 7 years before Fannie Mae (FNMA) will consider offering you a new mortgage loan following a foreclosure. Keep in mind, that FNMA may make an exception if there are extenuating circumstances, but it is not a normal loan approval process.
There are ways to handle a mortgage default situation that avoid foreclosure. We can match you to a local attorney in your area who has the experience to know which options are most beneficial and probable – that’s right, an attorney who is licensed right in your jurisdiction. Come see us today at MortgageAssistNow.com to learn more about getting the legal help you need to avoid the consequences of foreclosure.