The wheels of foreclosure move slowly, and there is still time to steer the ship in a different direction and save your future. Unfortunately, foreclosure is completely avoidable, yet families are sometimes harmed for years because Chicago homeowners were unaware of the implications and did nothing to prevent it.
Regardless of the events that led to the situation, homeowners who take steps to avoid losing their Chicago house will have the most control over their future. As the lender’s letters begin to come, there is still time to contact the lender and seek to make an agreeable agreement.
Those who prefer to bury their heads in the sand and wait for the lender to foreclose will face a long path ahead. Continue reading to learn about five ways your Chicago home’s foreclosure will affect you in the future.
Costly
One of the ways that the foreclosure of your Chicago home will affect you is the cost; your attorney will charge thousands of dollars, not to mention any costs that accrue on the mortgage loan or from the foreclosure process itself, which can be significant. As a result, allowing your home to go into foreclosure is an expensive process for you as the homeowner, as well as the lender, the local government, and other area property owners.
Lose Equity
The loss of equity in your Chicago home is another way that foreclosure will affect you in the future. Equity is the difference between the amount due and the home’s current market value when homeowners pay down their mortgage balance. As the fees and costs of the foreclosure mount, the equity you’ve built up over time will begin to dwindle. Furthermore, lenders frequently choose the lowest appraisal value, thereby diminishing any remaining equity.
Future Credit
The impact of a foreclosure on your Chicago home on your credit is one of the most immediate consequences. While your foreclosure will not linger indefinitely, it will remain on your credit report for seven years. While it is not impossible to obtain credit with this blemish on your record, you should expect to pay significantly higher interest rates as a result, making life even more expensive. It will aid your creditworthiness while you try to repair your credit and reclaim control of your finances.
Future Homeownership
It will be tough to obtain a mortgage. It will be difficult for the next seven years under numerous government programs; if you qualify for VA loans, the term might be as short as two years following the foreclosure of your Chicago home. There are, however, some mitigating situations that will allow these lenders to work with you, such as illness, divorce, or job loss, so don’t bury your head in the sand any longer; reach out and take control of your future.
Future Employment
As more firms use credit checks to discover more productive employees, your future career prospects have become yet another way that the foreclosure of your Chicago home will affect you. If you find yourself in this scenario, focusing on credit repair will help you. Although it doesn’t rule out all jobs, if the work requires you to handle money or customers’ financial information, your creditworthiness is more important.
We buy houses is here to assist you. Without any responsibilities, discuss the potential foreclosure of your Chicago home with the direct buyers. The experts at My House Fast are here to help you put an end to your foreclosure nightmare right now.