When an individual or couple purchases a home, the last thing they expect is that they will one day lose it to foreclosure. Unfortunately, certain circumstances do arise (e.g. financial hardship, loss of employment, divorce) that can make it difficult for homeowners to manage their mortgage payments. When a borrower (i.e. a homeowner) becomes delinquent, he/she is usually contacted by their mortgage servicer to discuss the loss mitigation options that may be available to them [Source: 12 CFR §1024.39].
In the event a borrow continues to miss payments, they may wind up facing foreclosure. The foreclosure process can be difficult and stressful and can affect a household in multiple ways. The Michigan State University Board of Trustees shared a few ways in which foreclosure might affect a household, all of which can be read about down below.
- Displacement and housing instability.
After a home is placed into the foreclosure process, there will come a point where it can no longer be occupied by the owner. While some will attempt to live in their home until it is sold, House Bill 87 was created to speed up the foreclosure process which means a homeowner may be forced out quicker than they anticipated. During this time, homeowners may find it difficult to find a new place to live, especially if their financial rut has impacted their savings and credit.
- Financial insecurity.
If a homeowner is looking to save their home from the foreclosure process, they may turn to certain resources for additional money. For example, the Michigan State University Board of Trustees says some families will exhaust their savings, forgo health insurance, and even skip meals in an effort to save enough money to keep their home.
- Family disputes.
According to the Michigan State University Board of Trustees, “the trauma and stress of the foreclosure process can damage marriages and harm other family relationships.” Losing a home isn’t easy, and if children are involved, it may have an impact on them as well.
- Heath problems.
The stress that can build from the fear of foreclosure or the process itself can be taxing on a homeowner and their family. Stress can lead to serious physical and mental health issues and should be dealt with to remove it from the picture.
The Orlando, FL Real Estate Lawyers at Legal Counsel P.A. Help with Foreclosure-Related Matters
If a family in Orlando, FL is at risk of losing their home to foreclosure, they shouldn’t have to go through it alone. Sometimes, with just a little help, they may actually find that they don’t have to walk away from their property. To find out how a homeowner can avoid foreclosure or get through the process with a little more ease, they can contact Legal Counsel P.A. to speak with an Orlando, FL real estate attorney.
Legal Counsel P.A. is located at:
189 S. Orange Avenue, Ste. 1800
Orlando, FL 32801
Email: [email protected]