Homes For Sale

No doubt that foreclosure is a traumatic legal process where the homeowner loses his home to the bank or lender.

 The countdown results when the borrower cannot make payments and a default on his mortgage, the lender repossesses the property. The borrower may still owe for the difference between the amount of loan and the home’s fair market value.

 A foreclosure should be avoided at all costs to a homeowner.

 Emotional issues may have played the part in getting a homeowner behind on payments. The following issues may have resulted in a homeowner facing foreclosure:

Excess debt

Death in family

Illness or medical issues

Unemployment/ job loss

Divorce

ARM mortgage that has risen

All of the above are consequences tough enough to handle them. However a foreclosure could be tougher. The borrower will pay dearly for a foreclosure in many areas of their lives besides the emotional aspects. Listed below are five reasons why to avoid foreclosure.

Employment

 Future jobs could be in peril due to a foreclosure. Many employers run credit checks on prospective employees and ask on applications if you have ever had a foreclosure. A foreclosure can be a scarlet letter for future employment as many job applications ask these questions on applications.

Foreclosure Disclosure

 Homeowners with a past foreclosure have to disclose the foreclosure on many applications and forms for the future. Job applications ask this question on their applications. A homeowner will always have to disclose they have had a foreclosure on any mortgage application. 

Credit Scores

Homeowners with a foreclosure undergo lower credit scores by three hundred points or more. A foreclosure will stay on your credit report for 7-10 years. This is the hardest item to repair on a credit score. This can affect your ability to obtain loans, get housing with credit check required, get car loans and apply for credit cards.

Security Clearance 

Moreover foreclosure on a record, security clearance can be damaged with jobs in the military, government and police force. There are cases where a job will be revoked due to this bank. 

There are many options available to homeowners in a financial bind facing foreclosure. Talk with your lender or a real estate professional to search out the best option for your situation.

Always remember that foreclosure should be a last option.

Mortgage Lending News, LLC
http://www.mortgagelendingnews.com
Miami, FL
Tel. (305) 280-7400
Tel. (800) 542 7984

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