Losing your house to foreclosure can have both long and short-term effects.
Most people ask, “What happens after foreclosure?”
There could be problems you might not have even considered as a result of a foreclosure.
If you are close to losing your home, there are solutions and ways to stop the banks from proceeding.
First, let’s discuss the effects of foreclosure.
What Happens After Foreclosure Atlanta
The Financial Effects of Foreclosure
When you are foreclosed on, it will obviously have an adverse effect on your credit.
Your credit score can drop by over 250 points, making it difficult for you to open a new line of credit with anyone.
When your credit begins to rise again, you will need to be patient and not have any other financial slip-ups.
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 approximately 2-7 years to be able 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 might find yourself having to pay income taxes on the amount you were not able to pay back.
Consult with an Atlanta foreclosure attorney or CPA to learn how a foreclosure will personally impact you in Atlanta.
Mental Effects of Foreclosure
Losing your house isn’t fun.
The prospect of being homeless can cause stress, depression and lowered self-esteem.
Losing your house is a loss of comfort, shelter, and recluse.
But remember, this happens to people every day and it will pass.
Here at Breyer Home Buyers, we can help you avoid this situation.
My Home Was Foreclosed On Now What?
Depending on your type of foreclosure, you may receive the right of redemption.
In judicial foreclosures, the lender takes you to court to takes possession of the property.
Judicial foreclosures allow the lender to pursue a judgment for the deficiency balance owed on the property after the auction.
The fastest and best option to avoid foreclosure is to sell your house right away.
However, if you are facing foreclosure you might not have the time to wait for the traditional listing process.
In addition, a listing will incur costs upfront.
If you have missed mortgage payments, coming up with the cash to fix, repair and upgrade the house may not be readily available.
You can choose to sell your house quickly to a professional homebuyer.
Breyer Home Buyers can make you a fair offer on your house, allowing you to sell quickly and walk away from the troubles you have been facing.
Not all homebuyers are the same.
Before you agree to sell your house to an Atlanta house buyer, make you have run the numbers and that you won’t be hit by any hidden fees or charges.
Breyer Home Buyers is a full-service buyer.
We handle everything from start to finish so you can get out of your difficult situation quickly.
Avoiding Foreclosure Options
Did you know that you have options when trying to avoid foreclosure?
Here’s a list of 10 ways to avoid foreclosure:
1. Don’t Ignore the Foreclosure
Most people that we meet with bury their heads in the sand.
The reason may be embarrassment, ego, or pride.
You’re afraid that you are failing your family.
It’s a tough road to travel down.
But the worst thing that you can do it ignore it.
So, saddle up and get ready to fix the issue – not ignore it.
2. Contact Your Lender
Let’s be real.
Your bank doesn’t actually want your house.
They make their money by lending money.
Not by owning and upkeeping properties.
They want to work with you.
So, give them a call and ask what your options are.
3. Open and Respond to All of the Mail From Your Lender
Heading into foreclosure, you’ll want to know what the foreclosure timeline is.
The notices that you receive from your bank will have the timeline and foreclosure process laid out for you.
They also should be sending you information about your options to stop foreclosure.
Don’t just let that mail stack up.
4. Know Your Mortgage Rights
Don’t let your lender take advantage of you.
Read your mortgage documents carefully.
Break out the highlighters and mark important statements within those documents.
Most importantly, though…
Find out what they can do when you don’t make payments.
If you are uncertain about your rights, call the Georgia Housing Authorities.
5. Understand Foreclosure Prevention Options
You know you can avoid foreclosure, right?
If you are uncertain what your options are, check out HUDs resource page for avoiding foreclosure.
6. Contact A HUD Approved Housing Counselor
The U.S. Department of Housing and Urban Development (HUD) funds free or very low-cost housing counseling nationwide.
Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance.
Find a Georgia HUD-approved housing counselor near you.
7. Prioritize Your Budget
Look.
You need to cut spending.
And quick.
Cut unnecessary spending, like:
- Starbucks
- Cable/television
- Internet
- Drinking
- Smoking
- Eating out
- Shopping (not groceries)
It’s going to be a tough few months.
Know what’s tougher?
Losing your house and your family being evicted from your home.
Tighten up your budget and dump your money into the mortgage to bring it back on track.
8. Sell Your Stuff
Have a second car?
Have lots of jewelry?
Have a PS4 and a 42″ TV?
Have an Apple laptop?
Sell your stuff.
Any of these items would pay for 1-5 months of rent.
Selling the stuff you “can’t live without” can help you keep a place to live.
Let’s be real…
You won’t be using that stuff anyways when you are kicked out of your house.
9. Don’t Use Foreclosure Prevention
These companies can help.
But they are going to charge you 1-3 months rent in fees.
But what if they help?
You can literally do what they are going to do.
They will call your lender and negotiate down your late fees.
That’s it.
Save the money and give it a shot yourself.
10. Sell Your House Before Foreclosure
You are on a tight schedule.
That means you can’t sell through an Atlanta Realtor.
You need someone to buy your house fast as-is.
Letting you skip costly repairs and waiting for months on a buyer.
So that you can get money to pay off your mortgage and move on.