If you ever have to suffer though a foreclosure there is zero doubt that it will have a huge impact on you. There will be emotional strain on you, it can have a serious impact on your family and your personal relationships. It can have a tremendous negative impact on your finances. It will undoubtedly have a negative impact on your life for years. If you want to avoid going through this situation you will want to know the 4 ways a foreclosure will impact you in Kansas City.
First of all I want you to know that PSR Home Buyers is here to help. Yes we are a company that helps distressed homeowners sell their homes, but more than that we are a company that helps people out of stressful real estate situations. Even if we can’t buy your home we can give you some guidance or point you to certain people that can help you with your situation if we can’t. All it takes is a phone call 913-708-1185. I was a teacher for 19 years and I saw first hand the pain that some of my former students felt when their parents lost their homes. This is something I’m very passionate about.
I feel like if you understand what you could possibly be facing in the future you have a better chance and coming out of that situation in a much better place. You can form a plan that can help you throughout the process.
Your future self will thank you for taking the time to learn more about your options during the process. We’ll cover 4 ways that a foreclosure will impact you in Kansas City.
4 Ways a Foreclosure Will Impact You in Kansas City
A foreclosure in Kansas City will show up on your credit report. This will be a huge red flag anytime you are trying to apply for any type of loan or credit line. Because of this you will be considered high risk. It will have a direct impact on your purchasing power. When you have bad credit that often leads to credit applications being denied. If you do happen to get approved when you have bad credit you can expect to pay much higher interest and fees than someone that has good credit. Additionally, it could possibly be a reason you are passed over for employment opportunities.
One of the top reasons for owning a home is the equity that builds up over time while your debt also decreases. In Kansas City most areas have been experiencing a steady up tick in property values over the last few years. Because of this depending on how long you owned the home and how much it has increased in value your financial gains could be in the hundreds of thousands.Equity is the difference between what your property would bring in the current market, and the amount that is still owed on the mortgage. Depending on your circumstances, a foreclosure will impact your equity either partially or in full, which could be a significant financial loss.
By taking quick steps to resolve a pending foreclosure, you can make the decisions on how your home is sold and for how much. Open your mail before it’s too late! Keep the lines of communication open so that you can be on top of what actions your lender may be ready to take and how much time you have to change the outcome in your favor. After a foreclosure you’ll have no such control. Should your Kansas City Metro property sell for less than is still due on your mortgage, you will still be required to make payments on this debt. This is known as a deficiency debt and can have an enormous impact on your lifestyle and family. Not to mention eating into your budget. Additional liability on your credit report will only increase the higher costs associated with having bad credit.
Foreclosure impacts your housing options in many ways. In general, landlords run credit checks as the first step when interviewing tenants. Naturally, your financial history will make you a higher risk and may cause you to be passed over for more desirable properties. Additionally, your choices in financing will be highly restricted should you wish to purchase another home. Fannie Mae is among the largest in the nation and offers a program with several financial benefits. Should you have gone through foreclosure and seek a mortgage lender, you should be aware that Fannie Mae will require a waiting period of 7 years before you will be eligible under their guidelines.
Facing the possibilities of a Kansas City foreclosure alone can be very stressful and inaction on your part risks your financial future. Don’t wait until foreclosure begins, let PSR Home Buyers help lessen your burdens today. Send us a message or give us a call today at (913) 708-1185.