Owning a home in New Jersey is certainly something to be proud of, but there may be times when the stress of homeownership could have you grasping for solutions to stay financially afloat. When weighing your options for financing your home when you have run into a cash flow issue, a foreclosure may be the most suitable option. At William H. Oliver, Jr. & Associates, we understand how a foreclosure may affect people and their ability to secure financing in the future.
Stopping a foreclosure may be doable if you are able to renegotiate the terms of your contract with your lender. You may also be able to effectively reassess your budget and identify areas where you can cut back your spending to save money that you can put toward your house payment. However, if you have reached the point where you are no longer able to find any other solution to pay your mortgage and your ability to keep your property is hanging in the balance, you may be at risk of foreclosure.
According to Zillow, Inc., the area where you may notice the biggest impact of foreclosure on your financial reputation, is on your credit score. With a noticeable decrease in your score, lenders may be a bit more apprehensive to loan you money considering what happened. As such, it is imperative that you begin doing things to rebuild your credit as soon as possible. Put every effort into staying current on all of your other bills to prevent an even bigger impact on your credit. Keep in mind that after seven years, your foreclosure will disappear off of your credit record.
When you understand how a foreclosure could affect you in the long term of your financial health, you can be better prepared to take the steps necessary to prevent it at all costs. For more information about personal bankruptcy, visit our web page.