Is absolutely certain that a foreclosure will impact you. Aside from all the emotional strains, foreclosure will impact your financials for years to come. Everything from the car you drive to the clothes you wear, the overall lifestyle that you lead can be negatively impacted by the effects of a foreclosure
Green Sparrow Properties 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 816-800-9238.
We want you to be informed so that you can make the best decisions for you and if you find that working together is in your best interests, we’re standing here to be your trusted partners and resolving this foreclosure situation. We’ve helped other homeowners prevent foreclosure and we would love to do so for you as well. At the very least, you’ll know what options you have in front of you.
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 overall purchasing power. Credit is kind of like oxygen. When you have it, you don’t really notice it. But when you don’t have it, it is immediately apparent credit history is used to determine all sorts of things such as approval for rental property, car loans, home loans, credit cards, and many other financial instruments. Any credit institution that wins to people with bad credit tends to charge an extremely high interest rate and additional fees. So it is best to preserve your good credit to make your life easier for years to come.
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. Every situation is unique but oftentimes people in foreclosure end up just giving away all of their equity to the bank. This is equity that you’ve worked years to obtain and it is devastating to allow that to just evaporate in an instant many times. We can help people out and at least salvage some of their equity to keep more cash in your pocket.
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. 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 Green Sparrow Properties help lessen your burdens today. Send us a message or give us a call today at 816-800-9238.