5 Top problems faced by people in foreclosure
Most of the people who face foreclosure will also bear a lot of problems and hardships following this unfortunate occurrence in their lives. Foreclosed homes are normally sold at lower prices than they had originally been worth. There are new jersey houses for sale that are as a result of foreclosure. The people whose homes have been foreclosed face a number of problems. Here are 5 such problems:
- Finding a new place to live
It is obvious that after your home is foreclosed, you will need to find a new home. The problem here is that this new home will require rental deposits. You will not be a suitable candidate for rental houses because the landlords will definitely ask for your credit rating; which will low once your home has been foreclosed.
Foreclosed owners are cash strapped and this presents the biggest problem when you are trying to find a new place to live. Most experts will advise you to consider cash for keys program once you realize you will face foreclosure. This program requires that you vacate your home voluntarily and leave it clean.
- Problems as a result of credit fallout
Defaulting on a mortgage makes you credit unworthy. Many of your creditors will find it difficult to collect what you owe them once your home is foreclosed. This credit fallout will make it virtually impossible for you to land any loans in the near future.
The companies that sell homes fast in Bayonne nj will not be willing to find you a rental home since they consider you credit unworthy. Most credit card companies could charge you a very high interest rate due to your credit scores.
- You have to live through loss
There are emotional problems that come with a foreclosure. Leaving your home and finding new neighborhoods is not an easy thing. Your children and indeed the whole family will be impacted negatively by a foreclosure. Finding new schools and the associated hardships could easily take a toll on the whole family. In this regard, counseling would be the right thing for the family.
- Difficulty buying a new home
You can be approved for an FHA loan 3 years after completion of a foreclosure. With Fannie Mae, this length of time was upped to 5 years for clients who have had a foreclosure. This, they consider is the best way to deter reckless borrowers who do not repay their mortgage prudently.
What options do you have after a foreclosure? Well, they could be there but rather limited. With a federally insured FHA loan, you could secure a mortgage after foreclosure. However, you will need to demonstrate that you have been a good bill payer after the foreclosure. You may also find that the issue of this foreclosure could affect your process of buying and selling a house in Hudson county nj.
- Explaining the foreclosure to potential employers
Many employers will do a credit check of how potential employees are. In this regard, one will find the subject of their foreclosure coming up during their job interviews. This could affect you more when you are applying for positions related to the handling of money.
Most employers will do credit checks before they can employ cashiers and auditors or accountants. This could negatively affect your chances of landing such jobs unless you have a good explanation to offer your potential employers.