Consequences of Foreclosure and How it Affects your Future?

Foreclosure is one of those uncertain life events that no one wants to face in his life. But, if you have bought a mortgage, there is no surety that when the life exigencies can make you stand in front of the foreclosure like situation. But rather than being stressed and panicked, you must look out for the available options and should consult an experienced foreclosure agent who would help you to stop foreclosure in Houston.

Foreclosure occurs in a situation when the homeowner fails to pay the mortgage payments for three or more months, or in the case, he has violated the loan terms. The situation is not only stressful, but it is also embarrassing for the homeowners and can lead to long-lasting consequences. Here are the consequences that you can get as a result of the foreclosure:

• You would lose your house.
• You will face the stress of not knowing that when you would need to move out of your house. 
• Chances are there that you may owe deficiency balance on your mortgage even after the sale.
• Your credit card will be affected negatively, as a result of which you may face difficulty in getting credit, new house and even, difficulties may occur in getting potential employment.
• Some alternatives to foreclosure offer you the assistance for relocation, which you will loose with foreclosure. 

 Thus, as the consequences of foreclosure are really serious, the homeowners are assumed to consult a foreclosure agent in Houston soon after they receive the foreclosure notice. If you are not looking for the ways to avoid foreclosure, you are underestimating that how it can affect your future. Here, we are going to tell you the impacts of foreclosure that it may have on your future.

• If your house is sold in the foreclosure sale or you gave it to your lender through a deed in lieu, your credit score will be shifted down by 250-280 points. 
• In order to get your credit score reached the point where you will be qualified for the mortgage, it will take around at least three years of the on time and regular credit payments.  
• Even in the case your mortgage company or your lender is entitled to come after you for the difference between the market value of your home and that you owe on the mortgage, at the time of foreclosure, they never do in most of the cases. 
• In the case, you have bought the home, not before the two years or you have made your purchase using the tax-deferred capital gains, there may be the tax implications for the capital gains of your short sale.  
• The mortgage debt that is relieved through foreclosure is taxable as income, depending on the amount of the mortgage. 

"Thus, the foreclosure will result in creating long-term complications for you and your family. In order to stop foreclosure in Houston and to reduce the effects on your credit score, you must look out the ways by which you would be able to stop foreclosure and save your house. "