How A Foreclosure Affects You In New Jersey

Everything seemed fine when you bought a home in South Jersey. Maybe a great house in a quiet suburb outside of Cherry Hill. You both had dual incomes, manageable property taxes, everything was fine. But circumstances and luck can unfortunately change quickly, leaving people faced with financial priorities to make. 

It may seem like you have no other choice than to foreclose on your South Jersey home. No more worrying about coming up with the monthly payment, just let the bank figure it out. While this might the path of lease resistance, it does not come without consequences. Below are a few ways that a foreclosure could negatively impact you. 

Credit

A foreclosure will have a massive impact on your credit. It could set you back hundreds of points on your credit score. Your credit score not only affects your ability to get another house, but also finance a car, find an apartment to rent, or apply for just about any type of loan. Once reported, it could take over seven years for the foreclosure to disappear. 

Taxes and Financial Situation

Did you know that you may owe taxes even if your home gets foreclosed on? Any debt that you owe that is cancelled by the bank is subject to become reportable on your taxes! This could mean that even though you walked away with zero dollars in your pocket after the sale, you may still owe money to the government. 

Ability to Find Housing

As stated, your ability to find future housing will be limited. After a foreclosure, you cannot buy another home through Fannie Mae for the next 7 years. Other mortgage companies may shy away from you. Landlords will question your ability to make timely payments. This will follow you around not just in South Jersey, but wherever you decide to move. 

These are just some, but not all, of the consequences you may face after a foreclosure. If you are facing a foreclosure in South Jersey and are unsure what to do, call a foreclosure attorney, or call us. Property Buyer Connect specializes in problem properties and we may be able help you salvage the situation. Call us today at 215-770-3122 or send us an online message today.