What Will Happen?
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What Will Happen What To Do What Not To Do What Are My Options Who Can Help Still have questions? Post on our Forum! |
Well first of all, you will lose your home and whatever equity you have built up in it. If you do not have any equity built up in your house, you bought at the wrong time or went with a negative amortization loan, and you have a higher outstanding mortgage balance than the value of your home, you are going to be in up to your knees. If this is the case, filing for bankruptcy might just be your only option. Next, while still in this poor financial situation, you are going to have to pack up and find a new place to live. Maybe try and find a relative, friend or co-worker you can live with for a month or two just to give you time to get you back on your feet. This might not always be an easy option, but just see what cheap temporary housing you can find. Crashing at a friend, relative or co-worker’s place might not be possible if you have a family with kids. Moving can be tough on a family and marriage. This can be especially troublesome when just lost your house and job. Trying to tell your kids or spouse exactly why you have to move can also be very difficult. Finding a new place to live and a new job without a current home can be quite tricky too. Often times, foreclosures are caused by defaulting on a loan due to loss of a job, and you are desperately trying to find a job before you house gets taken away from you. If you lose your house, you are going to have an even harder time finding a job. And if you do find a job, good luck telling your new boss that you have to take some time off to find a new home since you just lost your last one! If you do get a new job, find an apartment to rent, and start looking for your next home to buy, your credit score will kill your interest rate. Having a foreclosure on your credit report is a big red mark, and when applying for new loans for the rest of your life, the loaning agency will see that every time. There are always ways to rebuild your credit, but that always takes time and money. Sitting back and doing nothing is your worst case scenario. There are plenty of proactive things that you can do that will help you mitigate much of the loss when you are facing foreclosure. |