Foreclosure is a daunting word, but a very real dilemma for many people. Many don’t realize the actual facts surrounding foreclosure, so they don’t understand the repercussions or the consequences involved, or the solutions. When asked, people frequently have confessed that foreclosure is scary and depressing, as well as embarrassing and angering. They may feel overwhelmed by the doom of foreclosure and don’t know where to look for answers or help.
Facts about Foreclosure
- Whether from job loss, pay cuts or the sudden financial strain of unexpected injury, health or even additional dependents, foreclosure effects roughly 1 in 200 homeowners annually. Somewhere near, or even over, 1 million families go into foreclosure each year.
- Foreclosure can scar your credit and haunt your financial credibility for over 8 years. This can literally arrest your financial opportunities and lending abilities. Credit scores not only have an impact on your ability to borrow money for housing, car loans, and so on; more and more institutions are using credit scores to determine credibility and rates. Many rental agencies check your credit score to determine eligibility for renting a house. Some employers have begun to run and check credit scores. You may find your car insurance rates go up as your credit score goes down. Many insurance companies are evaluating those with low credit scores as high risks.
- High levels of home ownership actually increase the value of homes in their areas. Consequently, foreclosure can mean decreased home value for your neighbors.
What Can I Do About My Foreclosure?
Foreclosure is eminent after the second missed payment, and in full effect by the forth. There are some solutions that can be found by discussing repayment options with your lender early. A significant number of people, because of the emotions and fears surrounding their circumstances actually avoid their lender and keep their foreclosure a secret. The sooner you reach out, when your house is near or in foreclosure, the better.
Sometimes it is beyond this point. Either because you are out of time and resources or because too much additional debt has accrued, there is a point at which many become desperate for a solution. The best solution may be to sell. But who do you sell to? Or, what do you do if you have tried but your property won’t sell?
Some consider just walking away with the credit scar. However, this option puts most people on a financial black list, so to speak. The repercussions of this option are extensive and long-term. But, there is a better solution! Real estate investors have a lot less criteria and will buy properties as is. Investors can also offer you quick, cash solutions. Sometimes, with certain cases, investors can buy your property and complete the sale within a week!
This post brought to you by All-Star Investment Properties
All-Star Investment Properties, LLC is led by Shannon McCord, a seasoned investor with 16 years of experience in the industry.
We have homes for sale all over the Birmingham, AL area. We specialize in high cap rate rental houses and high equity rental properties. If you have been searching for how to invest in and purchase property in Birmingham, look no further. We work with various investment properties including wholesale, rehab and retail property. Investing in real estate is our specialty and each time we purchase a property we have you, the end investor in mind. We know all about home prices in Birmingham, AL and have many years of experience in income property. When it comes to property buying, you can count on us! We are your one- stop real estate investment company in Birmingham! Invest in rental property with us today!