Most (hopefully all) homeowners know that losing your home to foreclosure isn’t really the best thing to happen to you, even if it’s out of your control. But why is this? What impact does a foreclosure have on a person? According to San Diego short sale specialists, there are a few reasons why homeowners should try to avoid foreclosure.
The first reason is that foreclosure stays with you. As much as you want to forget losing your home, it is still a very agonizing experience that can haunt homeowners for years.
The second reason, and perhaps one of the more significant ones, is that foreclosure can have a very negative impact on your credit score. It’s almost impossible to have this repaired on your credit score and could affect your score by by 300 points or more. Losing your home to foreclosure is the most damaging thing when talking about future credit availability.
A third reason to avoid foreclosure is because of the potential for deficiency judgments against you by your lender. These are often times associated with short sales, but what many people don’t realize is that your lender can come after you for any amount of money that they were shorted when they sold your home at auction. For example, if you owed $100,000 on your home and it only sold for $75,000 at auction, your lender could sue you for $25,000.
There are obviously many reasons that homeowners want to avoid foreclosure, however these are just a few of the most important ones. If you have any further questions on this, we highly encourage you to contact a San Diego shot sale specialist. If you are facing foreclosure, or are already in the middle of the foreclosure process and would like to know what your alternatives are, there is help out there for you. If you are already working with a real estate agent on the sale of your home, make sure they are, in fact, a short sale specialist. This can make all the difference in the world in getting your short sale approved and avoiding foreclosure.