Foreclosure has a number of long-lasting consequences that are worsened if a judgment is entered against the homeowner. With the representation of a foreclosure defense attorney some of the consequences can be avoided. We always advise homeowners to avoid foreclosure if possible. Unfortunately, by the time we meet with homeowner it is usually too late. At that point, the best thing to do is be informed of the possible consequences:
- Renting a home – If the homeowners don’t fight the foreclosure, they may not have had the time to save enough money for the first month’s rent, last month’s rent and the security deposit, which are generally requested. Additionally, because of the unstable financial history, a renter may request an additional month’s rent payment.
- Buying a new home – Eventually the homeowner will get back on his or her feet and might have renewed interest in buying a new home. Once someone has a foreclosure on their record it will be much harder to get approved for a home loan.
- Lowered credit score – Even though falling into foreclosure isn’t the same as missing credit card payments, it still has a negative impact on credit score. This will affect all areas that concern credit, including being approved for a credit card, financing a car, or being approved to rent an apartment. The best thing a person in this situation can do is build a savings cushion just in case any unexpected expenses arise.
- Qualifying for a new position – Generally foreclosure will only have a negative impact on jobs that involve money management. The best practice to prevent a negative financial incident from getting in the way of attaining a desired position, is keeping detailed records of all finances going forward and making all payments on time.