Losing your home to foreclosure is bad enough, but what about the additional effects? There a growing trend of homes entering foreclosure, as well as a growing trend of negative outcomes experienced by those who have lost their homes to foreclosure. Unfortunately for many, losing a home to foreclosure is just the beginning.
The Domino Effect
The foreclosure process has been known to leave people homeless, forced to live with family or in substandard housing; but it can also reach deep into pockets. When a home enters foreclosure, the homeowner may still be held liable for delinquency fees. Since it is highly likely that they were already experiencing significant financial hardship that lead to the foreclosure, these fees create an even heavier financial burden. Further, the additional costs associated with relocating and securing utilities in a new living space can be problematic or financially impossible.
It isn’t uncommon for those who are facing the threat of foreclosure or have suffered a foreclosure to enter bankruptcy protection. One of the main benefits of bankruptcy can be halting an impending foreclosure proceeding. Bankruptcy is also common among foreclosure victims as they are often left with expenses they cannot afford to repay. While bankruptcy can provide many great benefits for those who have lost their home and are suffering from financial hardships, the credit damage caused by both a foreclosure and bankruptcy combined can be devastating.