Foreclosure is not your only option. We can help.
RESEARCH SHOWS:
Foreclosure can have significant financial and emotional impacts on homeowners. In addition to losing their home, homeowners who go through foreclosure may also experience damage to their credit score, difficulty obtaining future loans or credit, and emotional distress.
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Around 75% of homeowners who are in danger of foreclosure do not seek any help or advice from housing counselors.
— Consumer Financial Protection Bureau
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Homeowners who work with housing counselors are about 1.6 times more likely to avoid foreclosure than those who do not.
— the Urban Institute
The Importance of Avoiding Foreclosure
Avoiding foreclosure is essential for several reasons:
- It helps you protect your credit score: Foreclosure can severely damage your credit score and make it difficult to obtain credit in the future. It stays on your credit report for up to seven years and can affect your ability to rent an apartment, get a credit card, or even get a job.
- It can save you money: Foreclosure is an expensive process for both the borrower and the lender. The lender may charge fees and penalties for the foreclosure, and the borrower may incur legal fees and be responsible for the difference between the sale price and the outstanding balance of the loan. If you can avoid foreclosure, you may be able to save a considerable amount of money.
- You could keep your home: If you can avoid foreclosure, you can keep your home and avoid the stress and disruption of having to move. Losing your home can also have a significant emotional toll on you and your family.
- It can help stabilize your community: Foreclosures can have a negative impact on property values in your neighborhood and contribute to blight. By avoiding foreclosure, you can help stabilize your community and protect the value of your neighbors’ homes.
- You may be eligible for alternative options: Many resources offer alternative options to foreclosure, such as loan modification, forbearance, a standard sale or a short sale. These options can help you stay in your home, reduce your payments, or sell your home without going through foreclosure. By exploring these options, you may be able to find a solution that works for you.
- It can impact your ability to buy a home in the future: Foreclosure can make it challenging to qualify for a new mortgage in the future. Lenders may see you as a high-risk borrower, and you may be required to pay a higher interest rate or a larger down payment to secure a loan.
- It can lead to legal problems: If you go through foreclosure, you may still be responsible for the outstanding balance of the mortgage. This can lead to legal problems, such as wage garnishment or asset seizure, and may affect your ability to qualify for credit or find employment.
- It can harm your mental health: Foreclosure can be a stressful and traumatic experience, and it can take a toll on your mental health. It can lead to anxiety, depression, and other mental health issues, which can affect your relationships and your overall quality of life.
- It can affect your retirement plans: Losing your home through foreclosure can impact your retirement plans. If you were planning to use the equity in your home to fund your retirement, you may need to adjust your plans or delay your retirement.
In summary, avoiding foreclosure is crucial to protecting your financial stability, your emotional well-being, and your long-term plans. If you are facing foreclosure, it’s important to take action as soon as possible and explore your options.
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Common reasons people don’t stop a foreclosure
There are several common barriers that can prevent people from getting out of foreclosure, including:
- Financial difficulties: One of the main barriers to getting out of foreclosure is financial difficulties, which may include job loss, medical expenses, divorce, or other unexpected expenses. These difficulties can make it difficult for homeowners to keep up with mortgage payments or explore other alternatives to foreclosure.
- Lack of information or knowledge: Many homeowners are not familiar with the foreclosure process or the options available to them to avoid foreclosure. This lack of information can prevent them from taking action to address the situation.
- Fear or stigma: There may be a stigma associated with foreclosure, which can make homeowners hesitant to seek help or explore their options. Additionally, the fear of losing their home or damaging their credit can prevent homeowners from taking action to address the situation.
- Limited options: In some cases, homeowners may have limited options available to them, especially if they are in the later stages of foreclosure or have significant debts or other financial obligations.
- Legal barriers: Legal barriers, such as strict foreclosure laws or limitations on bankruptcy, may make it difficult for homeowners to explore certain options for avoiding foreclosure.
It’s important for homeowners to understand that they are not alone in their struggle to avoid foreclosure, and that there are resources available to help them navigate the process and explore their options. Seeking help from a foreclosure specialist can be a good first step toward finding a solution.
NEWSLETTER – KNOW YOUR OPTIONS. STOP FORECLOSURE.
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