Reasons to Avoid Foreclosure

It is easy to get dispirited when dealing with all of the threatening phone calls and letters, and just feel like giving up. Not understanding the process makes it even easier. Knowing the difficulty you are going through, and hearing in the voice of the lender’s representative on the phone a total lack of caring and understanding, can wear you down and make you feel like you no longer care. To keep the end goal of avoiding foreclosure in mind, and keep the motivation alive, here are a list of reasons why homeowners should avoid foreclosure.

  1. The homeowner will always have to disclose that they have had a foreclosure on any mortgage application and many job applications they submit in the future, and this can have an adverse affect on your future mortgage rates and employability. This is the only credit item that is requested specifically, and does not rely on what is on an individual’s credit report.
  2. Credit scores will be lowered by 300 points or more and a foreclosure is the most devastating credit issue you can have in relation to future credit availability.
  3. A foreclosure is the one credit report items it is almost impossible to have “repaired.”
  4. Your lender can seek a deficiency judgment against you and collect for any amounts they do not recuperate at bank sale.
  5. Many employers run credit checks on prospective employees and foreclosure is one of the top items that will put a potential new hire in jeopardy.
  6. Many current employers run credit checks on their existing employees, and a foreclosure can put a current position in jeopardy.
  7. Security clearances and government positions including but not limited to military and law enforcement can be jeopardized by a foreclosure.
  8. The homeowner may be responsible for any deficiencies after foreclosure for an indeterminate period of time, depending on the state involved. This can land a homeowner in never-ending collections.

As your agent, I will help you explore every option available to you and work with you towards a resolution.  Things look dark right now. But you need to remember that as bad as it seems now, there will come a time when your current financial troubles will pass. You will feel much better knowing that you did everything you could do to avoid this devastating financial consequence that so many people face today.  I have done this or dozens upon dozens of my clients, and each successful closing reminds me how good it is to help people save their financial future.