Ways a Foreclosure Will Impact You
Undoubtedly, a foreclosure will impact you in Philadelphia or any other city. Besides the apparent strain and emotional impact of the situation on your family and personal relationships, foreclosure can devastate your finances. From the clothes you wear to the car you drive or even where you reside or work, it will have a residual effect on your life for years to come. Pennsylvania is the fifth largest populated state in America; there were over 1,100 foreclosures. It was a big part of why these rates were so high in Philadelphia. Since the Pandemic hit the city, many people have lost their jobs. They are causing a ripple effect of people falling behind on their mortgage payments. It is terrifying for someone who relies on their job income to pay bills. Many homeowners face this same problem monthly, so know that you are not alone.
Buying Property 215 is here to listen to you and can address any questions about your specific circumstances and what you can do to avoid these ramifications. Just call 215-359-6090. We are experienced in helping homeowners out of challenging situations such as foreclosure, tax delinquency, inherited homes, and selling a house as is in PA.
By understanding what lies ahead, you will be better equipped to take immediate action against the negative consequences of foreclosure. There are plenty of unwanted things that follow a foreclosure sale. It is more common than you can imagine and happens to thousands of homeowners yearly.
Your future self will thank you for learning more about your options during the process. We’ll cover 4 ways a foreclosure will impact you in Philadelphia.
4 Ways a Foreclosure Will Impact You in Philadelphia
Having a foreclosure in Philadelphia appear on your credit reports will cause you to be considered a bad risk. Once this occurs in your credit history, it will impact your purchasing power. Bad credit often leads to credit applications being denied for credit cards, loans, or mortgages. Most people do not realize that they are also affected when applying for a new vehicle. Anything you use that calls for a credit search will show up. Any financial institution willing to approve consumers with bad credit usually charges exorbitant interest and annual fees that those who enjoy good credit avoid.
Additionally, it could be a reason you are passed over for employment opportunities. It is a way for these creditors to prevent a potential person who may default on their loan. Since the market crash of 2008, every lender and bank has been very selective on who they issue loans to. No one wants to repeat what has happened to our housing market before.
Among the top reasons for homeownership, your equity builds over time as your debt decreases and Philadelphia property values rise. Your financial gains could amount to the hundreds of thousands. Equity is the difference between what your property would bring in the current market and the amount 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.
You can decide how your home is sold and for how much by taking quick steps to resolving a pending foreclosure. Open your mail before it’s too late! Keep the lines of communication open to determine 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 will have no such control. Should your Philadelphia property sell for less than is still due on your mortgage, you will still be required to pay this debt. This is a deficiency debt and can enormously impact 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. Landlords generally 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.
No matter what your situation is, foreclosure can be a terrifying process. Many homeowners are looking to sell their homes to avoid foreclosure. Many homeowners panic and do not realize they can “sell my home” before they are foreclosed on if you contact a cash home buying company to purchase your home before the bank attempts to take your house from you. Buying Property 215 has helped homeowners sell their houses fast plenty of times. They are experts at helping homeowners in challenging situations.
Facing the possibilities of a Philadelphia foreclosure alone can be very stressful, and inaction on your part risks your financial future. Don’t wait until foreclosure begins; let Buying Property 215 help lessen your burdens today. Please send us a message or give us a call today at 215-359-6090. The Better Business Bureau accredits our family-owned company with an A+ rating and 5-star reviews!