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5 Ways the Foreclosure of Your North Carolina House Will Impact You in the Future

The wheels that drive foreclosures turn very slowly, and there is ample opportunity to steer the ship in a new direction and salvage your future. Sadly, foreclosure is entirely avoidable, yet lives are often damaged for years because homeowners weren’t fully informed of the consequences and took no action to prevent the process. 

Whatever circumstances changed to create the situation, divorce, job loss, death or any other tragic event, homeowners who take steps to bypass the inevitable loss of the home will have the most control over their future. As the letters from the mortgage company begin to arrive, there is still time to reach out to the lender and attempt to work towards an amicable solution. Most lenders do not want to take your house and only do so as a last resort.  

The road ahead will be difficult for those who choose to keep their heads in the sand and wait for the lender to foreclose. As difficult as it may be to face the realty of this situation doing nothing may be the worst course of action. Read on as we discuss five ways the foreclosure of your North Carolina house will impact you in the future.


One of the ways the foreclosure of your North Carolina house will impact you is the expenses; your attorney, should you choose to hire one, will charge thousands, not to mention any fees that accumulate on the mortgage loan or from the process of foreclosure itself, which can be substantial as well. Therefore, allowing your home to fall into foreclosure is a procedure that is costly not only to you as the homeowner but to the lender, the local government, and local property owners. 

Lose Equity

Another way the foreclosure of your North Carolina house will impact you in the future is by the loss of equity. As homeowners pay down their mortgage balance, the difference in the amount owed and the home’s current market value is known as equity. As the fees and costs of the foreclosure add up including missed payments, late fees, penalties, court costs and attorney’s fees, the equity you’ve built over the years will slowly begin to drop. Additionally, lenders typically go with the lowest appraisal value, further depleting the level of any remaining equity. At the end of the foreclosure process you could end up with nothing left or even worse you could owe the lender money after your house has been sold the highest bidder. At that point they could pursue a deficiency judgement against you in court for the balance still owed.

Future Credit

One of the most immediate impacts of the foreclosure of your North Carolina house is the effect on your credit. While it won’t last forever, your foreclosure will be on your credit report for seven years. If the lender was granted a judgement for a deficient balance after the house was sold, that will stay on your credit for 10 years and could be renewed for another 10 years if not paid off. This negative event will affect your ability to obtain new credit including personal, auto and real estate loans as well as credit card accounts. Also, many credit card companies parodically review the credit reports of their borrowers and can increase your interest rate, lower your credit limit or even close accounts if they feel you are no longer credit worthy. It’s not impossible to acquire credit with this red mark on your record, as a result you will pay much higher interest rates and fees, making life even more expensive as a consequence. It will help your creditworthiness as you work towards rebuilding your credit and regain control of your financial future.

Future Homeownership

Qualifying for a mortgage will be difficult. Under several government programs, it will be impossible for the next seven years; if you qualify for VA loans, the period may be as short as two years following the foreclosure of your North Carolina house. There are, however, some extenuating circumstances, such as illness, divorce, or job loss, that will allow these lenders to work with you. In addition, after foreclosure many lenders will require a larger down payment so they are in a better position should you default again. Be proactive try to work out an arrangement to rework your payments that you can afford or sell the property before the lender takes it back. Don’t put your head in the sand; reach out and take charge of your future.

Future Employment

As more employers run credit checks in the attempt to find more productive workers, your future employment potential has become another one of the ways the foreclosure of your North Carolina house will impact you. If you are in this situation, concentrating on credit repair could work in your favor. If you were severely delinquent but the lender did not complete the foreclosure process you may have an easier time getting late payments removed from your credit. Also, be prepared for with a letter of explanation for your future employer; it’s better to get ahead of the situation if you know that your credit will be reviewed as part of the hiring process. Although it doesn’t make every job impossible, your hirability is more dependent on your creditworthiness if the job requires you to handle money or customers’ financial data.

Zack Buys Houses is here to help. Discuss the impending foreclosure of your North Carolina house with the direct buyers at Zack Buys Houses without any obligations. The experienced pros at Zack Buys Houses want to help you end your foreclosure nightmare today. Call Zack Buys Houses at ‪(704) 769-0141‬ or send us a message to learn more.

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