Life After Foreclosure

October 26, 2009 by  
Filed under Blog, Life After Foreclosure

Is there such thing as life after foreclosure?

Of course there is, in fact many times life is much better for homeowners after foreclosure. Many homeowners primary regrets are signing the mortgage that they clearly could not afford a couple years down the line. Lets face the fact that this economy has driven people down to the ground; this is the worst we have seen the economy since the Great Depression. The income loss that many homeowners are facing, make it impossible to to live in the homes that they once believed they could afford. This is a common case for many homeowners who have faced foreclosure:

Mr. & Mrs. Harris purchased their home in 2005 with a hybrid ARM mortgage. The original payments were $2,100/month, but three years later the loan reset and now they are forced to pay $3,100/month… This is only the first reset, the second one will soar higher! Foreclosure is on its way with such high mortgage payments. the Harris’ have attemtped at a loan modification, but we’re denied due to lack of income. This is when they could have turned to their other options such as a short sale, but they were unaware of the options available to them. These lenders treat their homeowners terribly, giving them the runaround for a solid month. An auction date quickly came, and they were forced to leave the proeprty due to a foreclosure.

This was a devestating reality for them to face, but they were forced to move and rent a property in a location that was cheaper. The good thing is is that they did not need to downgrade too much and were able to rent a home that was equal in size. Moving forward they will be much more careful with the loans they avquire. FOreclosure will remain on their credit for 5-7 years, but a foreclosure is not the end od the world. They are already back on their feet, with new jobs, and a brigther future.


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Housing Assist Coldwellbanker