Concerned about foreclosure? While many will be ringing in 2021 with New Year celebrations, those who are in mortgage forbearance due to loss of income caused by the pandemic may see their Fannie Mae or Freddie Mac forbearance program come to an end. Without certainty about their financial situation, many homeowners are making the wise choice to sell their homes on their own terms, rather than waiting around for their homes to be taken by the bank. Educating yourself on your options can help you to focus your efforts towards recovering what you can from the property and avoiding the long-term consequences of foreclosure. By working with a professional home buyer you can rely on, you can have a guaranteed closing date and a guaranteed price, and will not have to worry about dealing with retail buyers, who often back out of deals at the last minute or cannot qualify for financing. Without taking the right steps to protect yourself, here is what the end of the foreclosure moratorium may mean for many homeowners in Dallas Fort Worth.
Foreclosure Fees in Dallas Fort Worth
This is not the time to stick your head in the sand! Homeowners will soon begin to receive notifications from their lenders. Depending on the specific terms of the forbearance agreement, there is usually a time period allowed for the homeowner to catch up their mortgage payments. The Joint Economic Committee of Congress determined the average foreclosure has a cost of around $7,200 to the homeowner. Depending on the circumstances, you may need an attorney. Fees for legal assistance in foreclosure proceedings vary, many attorneys offer a flat fee arrangement, ranging from $1,500 up to $4,000. There may also be additional charges for itemized expenses such as court costs, postage or even travel. If you are unable or unwilling to pay the fees associated with the foreclosure, the lender may have the right to attach a judgement, which could mean further indebtedness for already strained homeowners in Dallas Fort Worth.
Financial Loss
At the end of the foreclosure moratorium, the payments on the mortgage that are past due will be added into the loan, however, there will be no further acceptable delay on the monthly payments that follow. Our home is usually the largest investment we make and over time the equity we build in a home can make up a large amount of the money we have available at retirement. Without the intervention of life-changing circumstances, such as returning to work or new employment, the end of the foreclosure moratorium may mean loss of the equity in the property for homeowners in Dallas Fort Worth. You may also still owe any difference in the amount the property sold for against your remaining debt on the mortgage to your lender, known as a deficiency, after the foreclosure. A foreclosure will remain on your credit report for a period of 7 years. Higher interest rates will add to your costs of living on any credit you do qualify for, due to the foreclosure. In some cases, your chances at a job may be jeopardized by your credit history as well.
Moving Expenses
The end of the foreclosure moratorium may mean eviction for homeowners in Dallas Fort Worth. At the end of the of the foreclosure process, the home may be sold to the new owner at an auction, leading to the final step in the foreclosure process – the new owner taking possession of the home. An eviction process will be carried out, eventually leading to the homeowners receiving notice of when the possession will take place, and the property must be vacated. This time period can vary, from three to 30 days. Then you will be faced with the expenses of moving and the stress of having to find a new place to live in a matter of days. You will need funds for deposits and utilities. If there is no resolution to your financial situation in sight, you may want to consider selling your house now. Experiencing the loss of your home in foreclosure is enough stress for most people. The eventual eviction that follows can be even more stressful. If you don’t plan your life, others will do it for you, so the time to act is now!
The end of the foreclosure moratorium may mean enduring painful financial loss, watching your credit be destroyed, paying for an unsought relocation, and additional debt. Through either a traditional listing with a real estate agent or selling on your own, there is no guaranteed closing date or guarantee that the home will sell. When you consider both the immediate and long term costs, it may be worth selling now, to guarantee your closing date and protect your future. On January 1, 2021, your monthly mortgage payments will be due again and banks will start foreclosing. Alternatively, you can consider selling to Dallas' Best Home Buyers and avoid the loss of your home and all of the hidden costs of foreclosures. We’re happy to answer any questions or concerns you may have. To learn more about us, what we can offer, and what the foreclosure moratorium may mean for you, send us a message or give us a call today at (972) 850-8655.
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