Two ways a foreclosure will influence your future
Losing your home is a terrifying experience. Whether you lost your job, faced a debilitating injury, or simply lost control of your debt, when you begin to miss housing payments you can be sure the bank will act quickly. The foreclosure process begins with a notice of default, which informs you of the amount you must pay and how much time you have before additional steps are taken. If you default on your loan, the lender will initiate a home auction. From here, your home no longer belongs to you. This is a harsh reality, but with appropriate preparation, the transition into the next stage of your life can be as smooth as possible.
While pursuing foreclosure, your home lender will attempt to make up for the value of your home through auctioning it off. You are absolutely going to lose your home, and preparing your life before the foreclosure begins will save you from homelessness. Unfortunately, even with adequate preparation, there are several ways a foreclosure will adversely impact your future. These include:
- First and foremost, you can expect your credit score to fall more than a hundred and fifty points in the aftermath of a foreclosure. As you attempt to move on with your life, your damaged score may come back to haunt you. You will have a more difficult time obtaining credit cards, potential employers may consider your credit score a factor in employment, and renting will become more difficult.
- In addition to credit impacts, a foreclosure has noteworthy tax implications. Normally you are only responsible for your normal income, but the IRS considers forgiven debt additional income. This means, as you file for foreclosure, you must prepare for a tax increase.
Contact a Fayetteville Foreclosure Lawyer Today
If you or a loved one is facing foreclosure, a Fayetteville foreclosure attorney vastly increases your chances of staying off the streets and moving on with your life. At Bradford Law Offices, PLLC we understand exactly how stressful this process can be, and fight passionately for our clients to ensure they are informed and engaged every step of the way. Contact us today at (910) 668-0006 for a free consultation with one of our trained, empathetic legal representatives.