Foreclosure is a very frightening time to a family irregardless of how they find themselves in a situation that could result in the loss of their home. Unfortunately, a thousand families find themselves in this situation every month in the Dallas-Fort Worth area. So, what are the consequences of a foreclosure? Let’s look at what homeowners need to know about the effects of foreclosure on families in the Dallas-Ft Worth area of Texas; as well as, some solutions.
The Effects of Foreclosure on Families in Dallas-Fort Worth
- Loss of your home – Unfortunately, if a foreclosure runs its full course you will lose your home. More often than not, the property is returned to the mortgage company unless a real estate investor buys it during the auction.
- negative credit score – The doesn’t file for foreclosure until you are at least 3 months behind on the mortgage… All of the late and/or no payments; as well as, the foreclosure will stay on your credit report for seven years. Your credit rating will be lowered by the foreclosure.… Exactly how much it will lower the credit score varies. However, it can drop as much as 100 points.
- Mental stress and depression – It’s a well known fact, foreclosure effects psychology. The inability to pay the mortgage and the possibility of losing your home to foreclosure causes mental stress and strain that can result in depression, anxiety and alcohol use.
- Lowers the value of homes in the community – Lastly, another major effect of foreclosure in the Dallas-Fort Worth area is it decreases the value of other homes in the community. If you are behind on your mortgage, maintenance of the property is not a priority. Paying the mortgage is more important than remodeling the kitchen or bathroom. As a result, the value of the home decreases. No to mention, if someone buys it at the auction, they buy it for the amount owed to the bank. It’s generally a lot less than the market value of the home, if it was renovated. How does it affect the value of other homes in the community? The market value of a home is determined by what other homes have sold for within a half mile radius of the listed property.
How to Get out of Foreclosure in Dallas-Fort Worth
For the physical, mental and financial well being of you and your family, you need to minimize the effects of a foreclosure on your family as much as possible. The process is very frustrating, tedious and time consuming; however, there are people who have experience with foreclosures, available to help you navigate through the process and educate you on all the options available to you.
- Call your mortgage company: This sounds simple, but this is definitely where you should start. Banks are not in the real estate business; they are in the finance business. Call them and let them know your situation. In some cases you may qualify for forbearance or hardship. It’s important to know forbearance only temporarily stops or reduces your mortgage payments for a period of time. Eventually you will have to pay all missed or reduced payments back in the future.
- Talk with a local real estate expert, like Impossible Property Solutions: As a real estate company we know the local Dallas-Fort Worth real estate market. We are also experienced in the foreclosure process here in Texas. Give us a call at 214-307-2903 or completed the form on this website. We will discuss all the options with you. Our primary goal is to help you stay in your home.
- Sell your house: If you are frustrated with the foreclosure process, and rather sell your house to stop the foreclosure. We can help you with that too. We buy houses in Dallas-Fort Worth for cash… We would love to talk to you about your situation. Then go from there. If your final decision is to sell your hours, then we will make you a fair all-cash offer on your house. Just call us at 214-307-2903 or shoot us your details through this website.