People are losing their homes to foreclosure daily. The banks are taking houses and leaving hard-working people with nothing to show for it. If you are behind on your mortgage, there are alternatives! In our latest blog, we explore how a foreclosure will impact you and what you can do to stop it.
Foreclosure can bring about both short and long-term effects. If you are close to losing your home, there are ways to stop the banks from proceeding. First, let’s go over the effects of foreclosure.
The Financial Effects
When you are foreclosed on, your credit score can drop by over 250 points, making it a challenge to open a new line of credit with anyone. If there are no other financial mistakes along the way, it will take about 3 years for your credit score to rise again. If you want to buy another house, you will need to wait about 2-7 years to qualify for financing.
If you are foreclosed on, and the bank is not able to recover the full amount borrowed, the difference is considered income. You may find yourself paying income taxes on the amount you were not able to pay back. Consult with an attorney or CPA to learn how a foreclosure will personally impact you in Houston.
The prospect of being homeless can cause stress, depression, and lowered self-esteem. Losing your house is a loss of comfort and shelter. It’s important to remember that this will pass. Here at Heritage Home Buyers, we can help you avoid this situation.
What To Do About It
The quickest and best option is to sell your house right away. However, you may not have time to wait through the traditional listing process if you are facing foreclosure. In addition, a listing costs money upfront. If you have missed mortgage payments, the funds to repair the house may not be accessible. In this situation, you can sell your house quickly to a professional home buyer. Heritage Home Buyers can make a fair offer, allowing you to sell quickly and move on.
Not everyone is the same. Before you agree to sell your house to a home buyer, run the numbers and make sure that you won’t be hit by any hidden fees or charges. Heritage Home Buyers is a full-service buyer. We handle everything from start to finish so you can get out of your difficult situation quickly.
Do you want to avoid foreclosure on your Houston house? We can help! Send us a message or give us a call today! (281) 738-3898