The Consequences of Getting Your Home Foreclosed Upon
Tap to Call - (877) 250-8242

The Tough Consequences of Foreclosure

The loss of one's house may be the most severe and emotionally unsettling result of a home foreclosure. When one defaults on a home mortgage - refuses or is unable to make monthly payments according to their loan contract - they face repossession of their house by the bank that holds their primary mortgage.

In recent years, declining home values, loss of income and chronic unemployment have forced many U.S. homeowners into a previously unthinkable process. If you are worried about losing your house, you may want to consider a Chapter 13 bankruptcy filing, which may help stop home foreclosure.

Learn more about foreclosure protections afforded by Chapter 13 by speaking with a local bankruptcy attorney.

Free Case Evaluation

Life After Foreclosure

Homeowners dealing with foreclosure can face a new set of problems once the bank takes possession, including:

  • Difficulty renting property when landlords review credit history
  • Finding employment when potential employers do background checks
  • Emotional toll resulting from changes to financial and family stability
  • Strains on children resulting from school and neighborhood relocation

Free Case Evaluation

Foreclosure and Your Credit Reporting

The impact of a foreclosure on one's credit score, or FICO score, varies depending on the situation. A foreclosure can impact a credit score by an estimated 85-160 points, and the net impact of financial problems surrounding foreclosure can be much greater.

Still, every situation is unique. Factors that influence credit score, with and without a foreclosure include:

  • Number of active accounts
  • Level of debt compared to credit limits
  • Length of time accounts have been established
  • Number of 30- and 90-day late payments

Generally, a foreclosure stays on a credit report for 7 years after it has been entered into public records. A lawyer familiar with bankruptcy and foreclosure proceedings can explain the possible credit consequences associated with each of your options. You can also get advice on your credit reporting rights.

Can I Avoid These Consequences?

The prospect of a foreclosure is daunting, but you do have choices. If you are unable to continue making payments on your home, your options may include: foreclosure, deed-in-lieu of foreclosure, or short sale. A bankruptcy attorney can act on your behalf to help you make the best decision.

You may want to secure some extra time to protect yourself and your home. As mentioned earlier, in most cases filing Chapter 13 bankruptcy can stop the foreclosure process by way of the automatic stay. Learn more about protections afforded by Chapter 13, including stopping foreclosure, by filling out the review form below now to connect with a bankruptcy attorney in your area.

Free Case Evaluation

Tap to Call - (877) 250-8242

Copyright © 2018 MH Sub I, LLC. All rights reserved. ® Self-help services may not be permitted in all states. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. The attorney listings on this site are paid attorney advertising. In some states, the information on this website may be considered a lawyer referral service. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state.Your use of this website constitutes acceptance of the "Terms & Conditions", "Supplemental Terms", "Privacy Policy" and "Cookie Policy."