Are you being threatened with foreclosure? A foreclosure will affect you for many years to come and can leave your life in ruins. It doesn’t have to though, because you may still have time to handle the situation. Some of the letters and phone calls you get from your bank may differ – sometimes drastically – with the actual timelines and steps of foreclosure proceedings and its these actual items that determine how quickly you need to move to secure your exit strategy. However if you ignore the pending legal action letters, a judge isn’t likely to take pity on you in court. Don’t stick your head in the sand and allow the process to destroy all you have built by moving past the point of no return.
If your lender has just begun to issue notices of non-payment, then they have not issued the foreclosure yet. Why wait for that to happen? Avoid all of the negative impacts of foreclosure by selling to us now. Please keep reading to learn 5 ways foreclosure could impact you in Indianapolis.
5 Ways Foreclosure Will Impact You in Indianapolis
Negative Credit Reports
If foreclosure is looming over you like a black cloud on a sunny day, then protect yourself before the lightning hits your credit report. A negative credit report due to a foreclosure can impact your ability to acquire new housing and quite possibly impact getting a job in the future as well. It’s no secret that a lower credit score can result in being denied consumer credit and many times even if you are approved, the interest will be ridiculously high which only adds to the financial issues you already have.
Lost Equity
Equity is the difference between the current market value of your Indianapolis home and what you owe to the lender who holds the mortgage on your property. Since our house is one of the largest investments most of us will ever make, equity can build up literally to tens of thousands of dollars over the years, depending on the current trends in real estate. Surely you look forward to reaping the rewards of the equity in your home. If you let your house go all the way to foreclosure auction, more often than not you will not see a single dime of your equity returned to you.
Stress
There is a lot of stress surrounding the uncertainty of not knowing when you will have to leave your home which can lead to sleepless nights and have negative emotional impacts. This can extend out into your work, friends, and close personal relationships causing additional strain. Not to mention the embarrassment of being denied housing opportunities due to the foreclosure. Being evicted can be a traumatic experience and not a memory anyone recalls fondly.
Deficiency Debt
Often homes that go into foreclosure do not realize the full market value in Indianapolis and this leaves what is known as a deficiency debt. It’s not commonly known yet you could still end up being responsible to pay your mortgage lender that deficiency debt which is both unfair and an additional burden on your already stretched resources, along with yet another potentially negative impact on your financial history.
Fannie Mae Access
Once you’ve gone through a foreclosure, guidelines in place prohibit you from obtaining a mortgage utilizing the Fannie Mae program for the next 7 years. When it comes to the mortgage industry, Fannie Mae is one of the largest mortgage lenders. Their loan products provide homeowners several worthwhile benefits. The inability to avail yourself of this program could impact you by limiting the opportunities available to you in the Indianapolis housing market.
Sell It Now! Quick action is called for when there is an impending foreclosure on your property. The simplest way to avoid all of the negative impacts foreclosure can bring to your life is to nip it in the bud and sell your Indianapolis home to us.