4 Ways a Foreclosure Will Impact You in California

You will be affected by foreclosure without a doubt. In addition to the strained relationships and emotional strain the situation can cause, foreclosure can devastate your finances. It will have a long-lasting effect on your life, whether it is the clothes you wear, the car you drive, or where you live or work. 

Regardless of the specifics of your situation, MCB Homes Inc. is here to listen to you and can advise you on how to avoid these ramifications. Just give us a call at (209) 743-0602.

Understanding the outcome of foreclosure beforehand will better prepare you for acting to prevent the negative consequences from the start.

Take the time to become knowledgeable about your options so that your future self will thank you. The California foreclosure process affects you in 4 ways.

4 Ways a Foreclosure Will Impact You in California

Denied 

If you have a California foreclosure on your credit report, you will be considered a bad risk. If this appears on your credit history, it will affect your overall purchasing power. Having bad credit often results in the denial of credit card, loan, and mortgage applications. Consumers with bad credit are usually charged exorbitant interest and annual fees by financial institutions willing to accept them. Moreover, it may be one of the reasons you are not hired. 

Financial Loss

As your debt decreases and California property values rise, your equity builds up over time. You could gain hundreds of thousands of dollars. You have equity if your property can fetch a higher price than the amount of the mortgage loan. As a result of a foreclosure, you may lose some or all of your equity, which can be costly. 

Debt

You can have a say in how and for how much your home is sold by taking quick steps to resolve a pending foreclosure. Don’t wait to open your mail! Communicate with your lender so you have a better idea of what actions they may be taking and how much time you have to influence the outcome. You will no longer have such control after a foreclosure. In the event that your California property sells for less than what is still due on your mortgage, you will still need to make payments on this debt. This is known as a deficiency debt and can have a major impact on your lifestyle and family. Furthermore, it eats into your budget. An increase in liability on your credit report will only increase the costs associated with having bad credit.

Future Housing 

In many ways, foreclosure affects your housing options. A landlord typically conducts a credit check before interviewing a tenant in general. You will be considered less desirable for properties due to your financial history. Additionally, if you decide to buy another home, your financing options will be limited. Fannie Mae is one of the nation’s largest mortgage companies and offers several financial benefits. When you go through foreclosure and seek a mortgage lender, be aware that Fannie Mae requires a 7-year waiting period before you will be eligible. 

Whether you’re in Stockon, Lodi, Turlock, or Modesto this article applies to many cities throughout Northern California. Facing the possibilities of a California foreclosure alone can be very stressful and inaction on your part risks your financial future. Don’t wait until foreclosure begins, let MCB Homes Inc. help lessen your burdens today. Send us a message or give us a call today at (209) 743-0602.

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