As Miami foreclosure defense attorneys, we can promise you that life goes on after foreclosure. However, that does not negate the seriousness of the situation. Fighting foreclosure is always advisable if the situation permits it, due to the consequences that stem from being dealt a judgement by the court. That said, we understand there are not always viable alternatives, and we are committed to guiding you toward the most favorable outcome for your particular circumstance.
If you are unable to fight a foreclosure, here are some drawbacks you can expect to face.
Once a foreclosure is completed, the most immediate concern is determining where you will live. Buying a home will almost certainly be out of the question, and doing so will take the average defaulted mortgager anywhere from three to seven years. Therefore, finding a rental or arranging other living arrangements will be top priority.
Of course, having just undergone a foreclosure, you may not be in the ideal financial situation to pay for moving fees, come up with a rental deposit, and so on. Even worse, you may encounter difficulties getting your renter’s application approved. There are some steps you can take to remedy this issue, such as offering an explanation upfront, or increasing your security deposit.
Lowered Credit Score
It is inevitable that your credit score will take a hit following a foreclosure. Though the particular impact will depend on your existing credit history, you can expect your score to show a decrease of 200 to 300 points. This means that your interest rates may climb upward, and making major purchases post-foreclosure could be difficult, or even impossible. For this reason, saving as much as possible during the foreclosure process is essential, as is creating a strict budget to guide you through the months and years ahead.
Problems Securing New Employment
If you work in a financial field, employment issues can also accompany a foreclosure judgement. It isn’t difficult to identify the link between the two: if you’ve struggled to manage your own finances, who’s to say you will be able to oversee a business’s funds? Of course, we understand that no foreclosure is that black and white, and thus these two areas do not necessarily correspond with one another. To demonstrate this to a current or potential employer, prepare to explain the situation before the credit check is completed.
Just because your lender has foreclosed on your property, doesn’t mean you’re completely out of the woods financially. For starters, you may encounter a tax bill as a result of the action. There may be an opportunity for you to avoid these costs, which should be explored with the help of a knowledgeable attorney. Additionally, you may be hit with a deficiency judgement if your home did not return the amount owed at auction. Your lawyer may be able to prevent this prior to the sale, but if it’s too late to do so, determining whether you can fight it is advisable.
Our Miami foreclosure defense attorneys understand that recovering from foreclosure goes beyond facts and figures. For many, it comes with emotional turmoil that stems from losing a home, financial stress, and even embarrassment. That’s why we’re more than just legal advisors to our clients — we are also shoulders to lean on. We approach every case with sensitivity and empathy, and we’ll be here for you long after your case has closed.
If you’re ready to seek justice together, schedule a free consultation regarding your foreclosure case today.