Real estate can be a tricky sea to navigate for homeowners, especially with respect to mortgages.
Keeping up with steep monthly payments can be extremely challenging for many.
The sub-prime crisis of 2008 had the economy flooded with cases of foreclosures.
A foreclosure is the legal process that terminates an owner's right to a property.
Foreclosures typically follow payment defaults by the borrower and usually results in the property being sold at a public auction, with the proceeds being used to cover the mortgage debt.
Impact of a Foreclosure A foreclosure can have a severe impact on your life.
The adverse impact can have several different facets, including: * You lose the property: After having made the down-payment as well as some contribution towards your mortgage, you are left with no property in your name.
* Trauma of losing your home: You may have been living on the property.
A foreclosure will necessitate that you move out.
The label of being "homeless" can be extremely traumatic for you as well as for your partner and kids.
* Credit rating will deteriorate: A foreclosure tarnishes your credit record.
Your credit score may be lowered by more than 300 points.
Foreclosure unarguably has a devastating effect to your future credit availability.
The option that you choose to take will impact your chances of securing a loan or getting credit cards for the next five to ten years.
* High interest rates: You have to list your foreclosure on any mortgage application that you make, which can significantly affect interest rates.
* Employment: Your chances of getting a job may be jeopardized because of a poor credit record.
Foreclosures hamper your security clearance status, if you have one.
It may be impossible to attain this status after a foreclosure.
This means you will not be able to get a job in any federal or defense agency.
You may find it difficult to keep a job following a foreclosure.
A foreclosure can even be the reason for your termination from employment.
* You will not be eligible for any government insured loan for five to seven years after a foreclosure.
* A lender can take you to court in case the proceeds from the foreclosure are insufficient.
* Your tax liability will be higher in a foreclosure due to a higher amount of canceled debt.
It is best to seek professional guidance for your foreclosure issues.
For accurate information and expert advice, please visit www.
floridashortsaleshelp.
com.