The home is the single biggest investment and asset of most Americans. In a foreclosure, the homeowner loses this asset completely. In some cases the lender may be also be granted a deficiency judgement for any difference between the amount owed on the home plus fees and the amount that the bank was able to recover through a foreclosure auction. The loss of the home, plus potentially other assets as well, represents a serious blow to the homeowners finances and the household’s wealth.
The homeowner’s credit is also seriously impacted by a foreclosure. A foreclosure will remain on the homeowner’s credit report for seven years, though homeowners who rebuild credit in other ways may see their credit start to improve after two years.
Fortunately, a homeowners who are in danger of foreclosure have a number of resources at their disposal.
Don’t wait until it is to late, the best time to start thinking about preventing foreclosure is before it starts. Learn how budgets and good communication with your lender can make a difference.
Don’t become another foreclosure statistic! Check out the resources and programs below that are available to help you prevent going into foreclosure altogether.