The Realities of Losing Your Home
Thursday, December 23rd, 2010There are many consequences of losing your home to foreclosure. There are both emotional consequences and financial ones. The realities are this:
Foreclosure will follow you on your credit for 7 to 10 years. While it will be easier to get credit a few years after your foreclosure has passed, it will remain there for many years.
Your credit score will drop because of having a foreclosure on your record. With responsible spending, your credit score can increase over time but it will hit your credit.
It may be more difficult and costly to find another place to live. Many apartment complexes check credit before they will approve you. Your foreclosure may hurt you when you look at apartments and you may be required to pay more in a deposit because of this.
If you do not leave your home voluntarily before the foreclosure is completed, you will be evicted. How long that will take depends on the laws in your state. In some areas, you could have as little as 3 days to pack up your belongings after getting an eviction notice.
You will likely have to downsize your life. Going from a home to an apartment is a big change. You will probably have to get rid of quite a bit of stuff. The upside is that you might be able to sell some of the larger items.
