Tuesday, October 28, 2008
by Bob Sokoler
Did you know that 7 out of 10 homeowners facing foreclosure never get help from their lending institution to work out a payment plan, or a realtor who can help sell their home in a Short Sale.
The problem is going to get worse as more and more homeowners are heading towards foreclosure. A new article published on Housingwire.com has the title “Subprime Mortgage Delinquencies Building, Again”. The article points to another wave of upcoming foreclosures. Help may be coming is some form, an article published yesterday on Inman.com says “nearly $4 billion in federal grants will be spent to help state and local governments buy foreclosed and abandoned homes” The big problem is that for thousands of area homeowners in financial trouble, foreclosure may seem like a viable option. STOP! Before you make that decision you need to know the consequences of a foreclosure on your personal life (yes I said life) and the alternatives.
Foreclosure will affect you for years to come. For example:
1) Some employers now run credit checks on their employees and a foreclosure can put your current position in jeopardy!
2) A foreclosure is one of the top items that will put a potential new hire in jeopardy if the perspective employer runs a credit check.
3) If you have a security clearance or government position or you’re in military or law enforcement a foreclosure could affect your status, you may be shocked to find out your job or clearance could be in jeopardy.
4) You’ll have to disclose the foreclosure on any mortgage and many job applications.
5) A foreclosure can haunt you for years, starting with your credit scores being lowered by 300+ points.
6) You’ll be ineligible for a government insured loan for 5 to 7 years (only 2 years in a short sale).
7) You may end up with a Deficiency Judgment (the mortgage company can still attempt to collect the money they lost from you).
Need help? I’m a realtor at RE/MAX Property East and a C.D.P.E. Certified Distressed Property Expert. Visit http://www.LouisvilleShortSaleHelp.com or Contact Bob at http://www.weselllouisville.com/ or bob@bobsokoler.com.
