A foreclosure occurs when a mortgage lender takes possession of a property after the borrower fails to keep up with their loan payments. The lender will try to recover as much of the loan amount as possible, so he is legally entitled to seize the property. Foreclosure is a nightmare to any family going through it irrespective of the reasons why they are about to lose their home. If you are concerned about debt and fear that foreclosure could result, today we are going to look at the foreclosures effects in Memphis, Tn and what local house sellers need to know. First, we will look at the effects and the ways of easing them.
Foreclosure Effects in Memphis, Tn to Sellers
- Loss of your home – Pretty self-explanatory here. The major end result of a foreclosure in Tennessee is of course the loss of the home to the bank.
- Decrease in Your Credit Rating – Your credit rating will be lowered by the foreclosure. How much? It depends on how high your current credit score is… but the higher your current credit score… the more your score will drop after a foreclosure. If you have a credit score of 680 or higher… you may see a drop of 100+ points. A foreclosure won’t ruin your credit forever, but it will have a considerable impact on your credit scores, as well as your ability to qualify for another mortgage. It also can impact your ability to get other forms of credit, like a car loan, and affect the interest rate you receive as well.
- Depression and Stress – Your mental health is at stake because of the high pressure situation. Going through a foreclosure is emotionally exhausting and frustrating to say the least. These emotions are completely understandable and just as useless. You have to get a handle on them to keep from going crazy and find the best resolution
- House Values In Your Community – Signs of a foreclosure sale can leave neighbors wondering about the value of their homes in Memphis, Tennessee because they tend to lower the overall value of the houses in your neighborhood… especially if there are multiple foreclosures in the immediate area. Even some foreclosed homes may remain abandoned for years and that can affect the neighborhood value.
How You Can Ease The Effects Of Foreclosure In Memphis
For the well being of you and your family, you need to mitigate the effects of foreclosure as much as you can. The process can be frustrating and time consuming, but there are people who can help you navigate your different options in the process.
First…
- Call your bank and work with them: The key is communicating with your lender. The sooner you talk to your lender, the better. Most banks are very willing and ready to work with you… if you can show that with their help you can get back on track and save your house. They might ask you to provide proof of hardship or other financial information to help you work out a plan.Or, if you just want out of the house but you owe more on the house than it’s worth… see if the bank has any programs to lower the mortgage burden so you can get out from underneath it without it going through an expensive foreclosure. There are also government agencies that offer counseling and other assistance such as Making Home Affordable.
- Talk with a local real estate investing expert, like Memfixerupper: We know the local Memphis real estate market well and are very experienced in the foreclosure process here in Tennessee. Give us a call at 901-450-5179 and we can guide you toward the resources that can possibly help you.
- Sell your house: If you’d rather find a way to sell your house and avoid the foreclosure all together, great! We buy local Memphis houses for cash… and would love to look at your situation and make you a fair all-cash offer on your house. Just call us at 901-450-5179 or shoot us your details through this website.
With the above knowledge on foreclosure effects in Memphis – what sellers need to know, you can guard yourself by calling Memfixerupper at 901-450-5179 and we can assist you in the shortest time possible to sell your house. However, to fast track the process, kindly fill out our website contact form to give us more information about you. We’d love to connect with you and help you find the best solution!