When budgets get tight, it can be difficult to make mortgage payments. If you get to the point where the past due slips get overwhelming, foreclosure can seem unavoidable. However, foreclosure should only be a last resort because there are many penalties that come with foreclosure and you may be suffering from some of these penalties to for years to come. These are some of the difficulties that you will have to deal with if you are evicted from your home.
Eviction from Home
Not being able to leave your home on your own terms is not an easy experience. When your home is foreclosed upon, the bank will evict you from your home so that they will be able to sell the home as quickly as possible. It is stressful for anyone to be forced out of their home. If you are ever evicted, you will need to immediately pack up all of your things and find a new place to live before the bank forces you out of the house.
Lowered Credit Score
When your home is foreclosed upon this can seriously harm your credit score. Many times, it can drop up to 280 points. This can keep you from being able to make any important purchases, including a new home. It is very difficult to recover from a low credit score. It often takes years for your credit to return to the score that it was before the foreclosure. It makes it much more difficult for you to get a loan or a credit card. If you do get a loan, your interest rates will be much higher than market rates
Loss of Equity
When your home is foreclosed on, you will lose equity in your home. When the bank forecloses on your home, they will offer the home in a public auction as mandated by the courts. The amount that is earned in the auction will then go to the balance that is owed on your mortgage. If there is money left over from the auction after the loan and all fees and penalties are paid, you are able to keep any equity there.
Opting For a Short Sale With the Help of Fast Sale Florida
If you are struggling with your mortgage payments, you still have options that can keep you from dealing with these penalties of foreclosure. Many homeowners can apply for short sales with their lenders, which are a better option for both homeowners and banks. They do not have the same penalties as foreclosures do and banks do not need to deal with the expensive hassle of foreclosure. An important part of short sales is that the home needs to be sold for a fair price as quickly as possible. This is where Fast Sale Florida can help! We can be there to get you a cash offer within 24 hours of contacting us and we are able to purchase your home within the week.
