Foreclosure and its Effect!
There are lots of real life stories you can read and heard today from homeowners who have survived the crisis. The term foreclosure is not a popular word and people are not aware about this word since the beginning of the year 2005 when it hits a lot of homes in the United States. Maybe one of your relatives or close friends has suffered from foreclosure. If you know someone who suffered from this crisis, then you are aware about the effects of this crisis to their life. Since the devastation started in the year 2005 millions of families in the United States already experienced the crisis.
When you talk about foreclosure, there is no need for too much elaboration. When you have borrowed a mortgage loan for the purpose of buying new home and it was defaulted in repayment. Your lender will surely act as soon as possible to retrieve their capital by foreclosing the mortgage loan and filing a foreclosure case against you. Foreclosure is something very hard to stop when it’s already rolling. This is why it is important for all homeowners to act as quickly as they can as soon as they receive letter about foreclosure.
Your property will be sold right after the due notices to the borrower and if you do not respond to the default installment of your mortgage, your property will be sold at a public auction. This can be done in either two ways. One is through the County Courts or through a third party. Once your home has been auctioned you cannot do something to get back your home. All you need to do is to wait for the new owner of your property to ask you to vacate your home.
Foreclosure can really affect the lives of the entire family especially if you have children going to school. The will surely be affected largely by the changes that will happen as time passes by. As you leave your former home, you have to locate for new residence to occupy. If you have found new home far from your old residence, then your kids needs to be transferred into another school. This is a very big adjustment to them. New environment and people can stress kids. If you have little kids, you must avoid going into foreclosure as much as you can. Tightening the belt and wise spending will surely save you from experiencing the same crisis.
Right after the auction, you will be asked to vacate the property. It is important for homeowners to inform his or her family member about this situation. You have to explain to your child clearly why these things are happening. Honesty is important during this hard time. Do not give your family or your children hope that you can get your home back, if you can see that there is no hope. It would be very helpful if you will tell the truth and make them aware about the real situation. These are the worst case scenario which might happen to anyone, if they will not take hold of their finances wisely