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Foreclosure consequences impact your life in many ways. The
emotional loss of your home is bad enough but there are also
many financial consequences as well. Here are some that are
the most difficult to deal with.
Credit Issues
One of the foreclosure consequences is that it will stay on
your credit report for 7 years. This will create problems if
you try to get any new credit soon after the foreclosure.
For any credit you do get, you may end up paying higher
interest rates. It is also likely that any current credit
cards you have will not increase your credit line anytime
soon. Your credit rating can even affect things like car
insurance rates. Getting a loan for a new car or any other
type of loan will also likely be more difficult and you may
pay higher interest rates. It will also make it more
difficult to get a new mortgage while that foreclosure is on
your record.
Finding a New Place to Live
Another of the bad foreclosure consequences is that you may
find it difficult to find a new place to live. Many
apartment complexes require a credit check as part of their
application process. To save yourself some time and
application fees, call local apartment complexes and tell
them that you have a foreclosure on your credit. Ask them if
they would still rent to you or not. This way you do not
waste your time looking at apartments that you will not be
able to get. Sometimes an apartment complex will require a
larger security deposit or a co-signer if you have bad
credit. You might want to try renting a house or condo from
a private owner instead. They may not be as likely to check
your credit.
Getting a Job
If the reason you are losing your house to foreclosure is
because you lost your job, the foreclosure may make it even
more difficult to find one. Another of the foreclosure
consequences is that it is not likely that you will be able
to find work in the financial sector since most will require
a credit check. Companies even in other industries sometimes
require a credit check before hiring anyone. Your
foreclosure will likely make it difficult if not impossible
for you to find a job that requires a credit check. If you
know a company requires a credit check before hiring
someone, you may want to just skip applying for that job
altogether.
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