While the prospect of a foreclosure can be daunting, it can offer some benefits to struggling homeowners. For one, foreclosure can overhaul your finances. In some cases, losing something just might be the thing you need to fix your financial situation. For many homeowners, the costs of daily living and home maintenance are not exactly a breeze. While you will lose your home in foreclosure, this can be an ideal time to reevaluate your financial circumstances.
Going through a foreclosure will also allow you to negotiate and modify your mortgage terms. Take note that you will not automatically lose your house during foreclosure proceedings, so negotiating with your lender is a must. On the other hand, negotiating with your lender will require a thorough understanding of all the options available to you.
With this in mind, a South Carolina foreclosure attorney can negotiate with your lender to extend your mortgage term for reduced payments, forgiving some of the late payments and adding payments to the loan’s end. In most cases, this simple modification may help you keep your home.
There Are Many Drawbacks to Going Through Foreclosure
While the benefits of going through foreclosure may seem practical, the drawbacks can wreak havoc on your finances and living situation. It can be challenging to secure a home loan after foreclosure because it will negatively affect your credit score. You will also need to wait several years before applying for a new mortgage. Other drawbacks of foreclosure are:
You Will Lose Your Home
You will have to find a new home for your family, which will emotionally, physically, and financially impact all of you. In addition, you may find it hard to get a home loan after a foreclosure on top of losing your home equity, which can negatively affect your financial standing.
Your Credit Will Take a Significant Hit
Unfortunately, a foreclosure can remain on your credit report for at least seven years, depending on your particular situation. Additionally, it can result in your credit score dropping by 100 points or more.
You May Still Owe Money
Depending on your situation, you may still owe money to your lender if your house sells at an auction for less money than you owe. Take note that in South Carolina, lenders can pursue a deficiency judgment against borrowers in such cases. This will require the lender to file a lawsuit against you and request the court to give them the money you owe. You will be on the hook for paying the money if the judge rules in favor of the lender.
Speak to Our South Carolina Foreclosure Attorney Today
With legal guidance from our South Carolina foreclosure attorney at Reed Law Firm, you can try to prevent foreclosure and keep your home. Whether you are considering filing for bankruptcy, modifying your loan, a short sale, or a deed in lieu of foreclosure, we can determine the best recourse that fits your needs. To learn more about how our SC foreclosure attorney can help, you can arrange your consultation by calling 803-726-4888 or contacting us online.
