March 21, 2018 Tarek El Moussa

How to Avoid Foreclosure

Foreclosure is a nightmare. It comes when you’re down and out. Maybe you got divorced, lost your job, or something else happened. We care and want to help. But the banks don’t.

Foreclosures are a Negative Force to be Reckoned with

There’s a lot of stigma around foreclosing. It’s not just about your home. Your whole life is at risk: your health, your finances, your dignity.

There is a way to get out of it.

But first, let’s talk about why you should.

The Impact

  • Stress

A foreclosure is one of the most stressful events in life. It’s so severe that the Holmes and Rahe Stress Scale found it contributes to illness. So now you not only have a huge mortgage, legal fees, and the possibility of being sued to worry about, you can add health costs to your list of things to worry about too.

  • Finances

While we’re talking finances, let’s take a moment to consider your credit score. It’s true that the impact foreclosure varies, but you will get hit. Some people’s ratings have been lowered over 100 points. This is important because banks now see you as a risk, even if you had a high credit rating before this. You’ll need to wait 3 – 7 years before buying another house. Buying a car comes with roadblocks too. You can expect to get turned down on credit card applications, or any kind of financial application. Declaring bankruptcy is not unheard of.

  • Homelessness

Which means it will be hard to find a place to rent. You probably won’t have cash for the deposits most landlords require. After a background check they’ll see your foreclosure and will start looking for a “better” tenant. Expect it to take a while to find a landlord willing to take on that level of risk.

  • Mental Health

If you thought there was a lot of paperwork when you first bought your home, you can’t imagine how much paperwork is heading your way. Your mail will pile up. Overflow even. With letters from the bank, from attorneys, and other angry parties you never heard of but that suddenly want (and demand!) your house. You’ll get so many letters you’ll probably stop reading them at some point, even though you really shouldn’t.

Extenuating Circumstances

Okay okay. You missed a few payments. You know you’re not supposed to do that, but it’s not like you were expecting your life to change so drastically, so suddenly. Surely your lender will consider your extenuating circumstances.

Here’s the thing.

Being foreclosed on usually comes at the worst times in life. As they say: when it rains, it pours. So here it is to add more pressure, more stress, more tears.

The Solution

Here’s the good news after a lot of bad news: ALL of this can be avoided.

Tarek El Moussa, CEO of Tarek Buys Houses, can help. He cares about your story, your home and your future. As a Southern California real estate expert he offers an escape to the stress of foreclosure. If you’re ready to exit this stressful path as unscathed as possible, call him at 844-872-8937. He will find you a better solution.