Top 10 Reasons to Avoid Foreclosure in South Jersey

In today’s market, foreclosure is becoming more and more prominent for many families.  With unemployment at an all time high coupled with other life changes for many people, foreclosure can become inevitable for many.  The most important thing to remember when facing a potential foreclosure to consider you other options and why it makes the most sense to avoid foreclosure.  Also, working with a Certified Distressed Property Agent who can explain to you other options, you will see how nice it is to have someone explain to you what is going on, how to handle it, and how much time you have.

But for now, there are 10 Reasons that you would want to avoid foreclosure:

1. If you have a home go into foreclosure, you will always need to disclose that information.  Many job applications, future mortgage or rental applications will ask if you have ever had a foreclosure.  If an employee needs to decide between two applicants and he/she sees that one experienced a foreclosure, that may have an effect on the hiring decision.

2. When you experience a foreclosure, you credit score will be dramatically reduced.  Most more foreclosures will reduce your credit score between 150-300 points.  Having a lowered credit score will have a negative effect in applying for jobs, obtaining financing, interest rates and many other factors.

 

 

 

 

 

 

3. Of all of the many things that you can fix on a credit report, a foreclosure is not one of them.  Repairing your credit from a foreclosure is next to impossible.

4. You can have a deficiency judgment filed against you.  After your home goes through the foreclosure process and final bank sale, you could be responsible for your lender looking to collect on the amount lost that they did not recuperate at bank sale.  For example, you owe $200,000 on your home, and your property sells in a bank sale for $150,000.  There can be a deficiency judgement placed on you for the $50,000 difference.

5. Since most employers run credit checks prior to hiring an candidate, a foreclosure is a top item that could put a otherwise qualified candidate in a less than positive position.

6. For employees with current jobs, employers running routine credit checks could put not only your current job, but future promotions within that company also in jeopardy.

7. Many government jobs, military, law enforcement, and other jobs could put a limit on your security clearance.  The reason for this, is because many of these jobs are very high pressure expecting and extreme amount of confidentiality and protection.  If one of these employees has a foreclosure on his/her record, it could potentially be a threat involving security clearance.

8. After the foreclosure is completed, you, the borrower could potentially be responsible for any deficiencies for an extended amount of time.  For this reason, you could be placed in collections.

9. While is may seem like a stressful place to be in, knowing that you did all that you could to avoid foreclosure, you will feel better about yourself and your family from making the right decisions.

10.  Most importantly, there are so many options out there OTHER than foreclosure.  Many families “give up” when they get the first notice and start moving out or mailing keys back to the lender.  This, is the worst thing you can do.  There are so many other choices you have and can qualify for.  It is imperative to act quickly in speaking with a CDPE, or Certified Distressed Property Expert.  These agents have undergone extensive training and are there to help homeowners in distressed situations figure out the best path to take for their needs.

About Jessica JessicaHoltzman

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