If you are facing a potential foreclosure on your property in New Jersey, it can be unsettling to think about your future and how this decision may impact your ability to get credit in the future. While foreclosure undoubtedly has consequences, you have the ability to overcome its effects by carefully planning your next steps and taking precautions to prevent similar risks from happening in the future.
If you have been delinquent on your payments and are unable to continue to pay your mortgage, you may have been informed by your lender that they will be foreclosing your property. In these situations, you may have the chance to slow or even stop the process if you are able to negotiate the terms of your contract with your lender. If you are lucky, you will be able to modify the original contract to reflect how payments will be made going forward. However, if your inability to pay becomes a repetitive offense and is left unattended, your home will undoubtedly foreclose.
According to Zillow, Inc., foreclosure will have a significant impact on your credit score. In fact, your current score could drop a couple of hundred points. Fortunately, you can work quickly and strategically after the foreclosure is finalized to rebuild their credit. After seven years, the foreclosure notification will disappear from your credit. You can also create a new budget and make new financial goals for yourself. With your commitment to do things differently, you can avoid ever being in that position again.
The information in this article is intended for educational purposes only and should not be taken as legal advice.