Foreclosure is a nightmare to any family going through it, regardless of the reasons why they are about to lose their home. Today we are going to look at the foreclosures effects in Central Mississippi Mississippi and what local house sellers need to know. First we will look at the effects and the ways of easing them.
Foreclosure Effects in Central Mississippi Mississippi to Sellers
- Loss of your home – Pretty self-explanatory here. The major end result of a foreclosure in MS is of course the loss of the home to the bank. The actual foreclosure process does take some time, but Mississippi is one of the fastest states moving from default (being late on your mortgage) to the actual foreclosure sale at the courthouse steps. When foreclosure happens, you should be given 30 days notice to vacate the property, if you have not already moved.
- 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. In addition, you will find buying another home in the future to be more difficult. We have seen a lender deny a borrower for years if they were the foreclosing party. Your credit score will recover, with time, but lenders will typically not approve you for a mortgage for at least 2 years and you have to be current on all other debt payments for a minimum of 12 months when considering another mortgage.
- Depression and Stress – Your mental and physical health are at stake because of the high-pressure situation. Going through a foreclosure is emotionally exhausting and frustrating to say the least. We meet with people every day going through this process and they are paralyzed by fear because they don’t know what to do or where to turn. We work closely with owners when we can, to stop the foreclosure and give them time to get the property sold. This often improves their credit, gives them some relief while searching for a new place to live, and may even put money in their pocket when the home is sold.
- House Values In Your Community – Another one of the big foreclosure effects in Central Mississippi MS is that they tend to lower the overall value of the houses in your neighborhood… especially if there are multiple foreclosures in the immediate area. You’ve surely seen it before – driving through a neighborhood, seeing signs and letters taped to front doors or windows of often vacant homes. Also, overgrown yards and noting “not a single light on” often stand out as signs of a vacant, foreclosed, or pre-foreclosure property that has been abandoned by the owner.
How You Can Ease The Effects Of Foreclosure In Central Mississippi
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: 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. 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. One option we see now is a loan modification. Unforetunately, if you have a low interest rate, you will find the rate on the modified portion to be higher and your payment may not decrease enough to make a difference – we even saw one seller’s payment increase $500/month. Really? If they could not pay the lower amount, how will they pay the higher amount? The one benefit in this case is, the seller is no longer considered in default and if you get the house on the market and sold quickly, or find the resources to get that deficiency paid, you can save yourself from the foreclosure and consider buying a future home sooner than with a foreclosure on your credit.
- Talk with a local real estate expert, like IM, LLC: We know the local Central Mississippi real estate market well and are very experienced in the foreclosure process here in MS. We can give you tips and share resources like the Home Savers Program for qualified owners. Give us a call at 601-401-6965 and we can guide you toward the resources that can possibly help you. If you want to stay in your home, and there is a viable option for you to do so, we want to help you find the resources to make that happen.
- Sell your house: If you’d rather find a way to sell your house and avoid the foreclosure all together, great! We offer opportunities for qualifying sellers and properties to help you through the process and get the property sold if that is the best course of action for your situation. We also buy local Central Mississippi 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 601-401-6965 or shoot us your details through this website.
With the above knowledge on foreclosure effects in Central Mississippi – what sellers need to know, you can guard yourself by calling IM, LLC at 601-401-6965 and we shall 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!