If you have questions about your unique situation and would like to know how to best avoid foreclosure, Local Investor is here to guide you through the options and steps you can take. We care about what happens to you and your family, which is why we offer a free phone consultation at (516) 614-5606. By staying informed of the possibilities ahead, you can put an immediate stop to further consequences.
Learning about your options now will benefit you in the future. We’ll explore four ways a foreclosure will affect you in the Long Island, NY market.
Denial
A foreclosure in Long Island, NY will mark you as a bad risk on your credit reports. This will have significant influences on your general purchasing power. Bad credit is frequently linked to difficulties obtaining credit cards, loans, or mortgages. Any financial institution that is willing to take clients with bad credit or who have faced foreclosure may demand excessive interest and annual fees that those with good credit avoid. It might also be a factor in job hiring, as companies may avoid people with poor financial circumstances.
Financial Loss
One reason people consider homeownership is that your equity increases over time as your debt decreases, and as your Long Island, NY property value rises over time. Your potential gains could be in the hundreds of thousands of dollars. Equity is the difference between the current market value of your home and the remaining balance on your mortgage. However, a foreclosure will have an impact on your equity either partially or fully, which would be a substantial financial loss.
Debt
Resolving a foreclosure requires action and straightforward decisions. Understandably, this is a difficult time but waiting can create more problems as days progress. Don’t wait to open your mail at the last minute. If you communicate transparently to your lender, they may be more willing to work with you instead of foreclosing on your home. Keep in mind that once a foreclosure happens, all control disappears.
You will still be required to make payments known as a deficiency debt if the price your house sells for is less than what is still owed on your mortgage. It will have a major influence on your lifestyle and family, not to mention your funds. Higher costs are likely with bad credit, so additional liabilities on your credit report will just keep on adding up.
Future Housing
The housing market has changed dramatically since the Great Recession, and foreclosures have forced many homeowners out of their homes. A foreclosure will limit your future living options down the line. When selecting tenants, landlords will commonly run credit checks. Naturally, a bad financial history would make you a higher risk and may leave you out of the running for better properties. And if you want to buy another property, your financing options will be severely restricted.
Fannie Mae is one of the largest mortgage lenders in the country, and offers programs with a variety of financial benefits. If you have been through foreclosure and are looking for a mortgage lender, you should know that Fannie Mae will demand a waiting period of seven years before you can join their program.
Facing the prospect of a Long Island, NY foreclosure on your own may be frightening, and inaction on your part will jeopardize your financial future. Don’t put it off until it’s too late; let Local Investor assist you and relieve some of your stress now. We buy foreclosure houses in Long Island, NY. Send us an email or give us a call right now at (516) 286-2536.
