There is no doubt foreclosure will impact you. Besides the obvious strain and emotional impact the situation can have on your family and personal relationships, foreclosure can also devastate your finances.
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.
Faithful Home Buyers KC LLC is here to listen to you and can address any questions you may have about your specific circumstances and what you can do to avoid these ramifications. Just call 816-237-0869 .
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
Having a foreclosure in Kansas City appear on your credit reports will cause you to be considered a bad risk. Once this appears 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. Any financial institution that is 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.
The Financial Loss
Among the top reasons for homeownership, your equity builds up over time as your debt decreases, and Kansas City property values rise. Your financial gains could be an amount 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 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. More liability on your credit report will only increase the higher costs associated with having bad credit.