The Effects of Foreclosure

Certified Distressed Property Expert

Some Steamboat homeowners experiencing financial hardship think foreclosure is the only option they have.   Deciding to foreclose on your home will have a long-lasting effect on your family and your credit score, and could possibly even affect your employment.

When a homeowner stops making payments, the lender may begin foreclosure proceedings, usually with the purpose of reselling the home to recover the amount owed.  Steamboat Springs homeowners facing foreclosure need to be aware that a foreclosure will affect them for many years.

Contact Us to see if you qualify for a short sale for your Steamboat Springs property.

A few of the effects of foreclosure are:

1) Your credit scores will be significantly lowered, sometimes by more than 300 points. This is the single most devastating mark on your credit report and will affect all of your future credit possibilities.

2) A foreclosure listed on a credit report is nearly impossible to have repaired and will most likely remain a permanent mark on this valuable personal report.

3) Any future application for a mortgage you apply for will require you to reveal a previous foreclosure, greatly affecting your mortgage rates.

4) Most employers will also conduct a credit check. With a huge drop in your credit score due to a foreclosure, this may also hinder your future employment opportunities. This is especially true of many government positions, including military and law enforcement agencies.  If your job requires a security clearance, a foreclosure may jeapordize your employment.

5) If your current employer runs a credit check, then a foreclosure may even put your current position in jeopardy.

6) A lender may seek a deficiency judgment against you for the balance owed to the lender.

7) In Colorado, you may be responsible for deficiencies after the foreclosure for an undetermined time period, placing you in a prolonged cycle of continued collections.

A short sale process may be the better way out. Contact us to see if you qualify.