When foreclosure becomes a reality, homeowners must take quick action to protect their credit scores and financial future. A foreclosure moratorium is one way to give yourself some time and space to determine your next steps.
This blog post will discuss the foreclosure moratorium and what it means for homeowners in Orange County. Read on for more.
Foreclosure Moratorium: What You Need To Know
If you’re facing foreclosure, you’re probably feeling a range of emotions: anger, sadness, frustration, and fear. A foreclosure moratorium is when your lender agrees not to proceed with the foreclosure process.
A foreclosure moratorium can buy you some much-needed time to figure out your next steps and work on a plan to keep your home or sell it and avoid the long-reaching consequences of foreclosure.
Long-Reaching Consequences Of Foreclosure
Foreclosure’s various financial and emotional consequences can last for years. Some consequences of foreclosure are:
- Foreclosure can negatively impact your credit score, making it difficult to get approved for a loan in the future.
- A foreclosure also stays on your credit report for seven years, making it hard to buy a new home or car.
- A foreclosure can cause you to lose other assets, such as your savings or retirement account.
- The emotional toll of foreclosure can be significant. The stress of losing your home can lead to anxiety and depression.
Dealing With Foreclosure In Orange County, CA: Here’s How!
If you’re a homeowner, you should check your mortgage statements. You may have received notifications from your lender that there is a time allowed for you to make payments and bring your account up to date.
If you’re struggling to make your mortgage payments, you can do a few things to avoid foreclosure. You may be able to modify your loan terms or get a forbearance, which temporarily delays or reduces your mortgage payments. You may also be able to refinance your mortgage to get a lower interest rate or longer repayment period.
Financial Loss
After the foreclosure moratorium’s end, any past payments due on the mortgage will be added to the loan. However, there won’t longer be any polite delays on subsequent monthly payments. Our home is often our largest investment, and over time, we build equity in it.
If something doesn’t change in their lives, such as getting a new job or going back to work, the end of the foreclosure moratorium could mean that homeowners in Orange County will lose any equity they have left in their homes.
Moving Expenses
Orange County homeowners may face eviction if they can’t find a way to stop the foreclosure process. The final step in foreclosure is when the new owner takes possession of the property, which is happening more frequently now that the moratorium has ended.
The eviction process will begin with the homeowners receiving notice when they must vacate the property. This time can be anywhere from three to 30 days. After that, you will have to cover the expenses of moving as a renter.
Importance Of Working With Professional Home Buyers
Foreclosure is a stressful process, but understanding your options can help you focus on recovering as much as possible from the property and avoiding long-term consequences.
A professional buyer can give you an exact closing date and will not back out of the deal or have financing fall through, which inexperienced cash buyers are known for. Also, selling your house to a professional home buyer is a great way to avoid the hassle and stress of working with realtors, making repairs, and waiting months for your house to sell.
At OC Home Buyers, We Buy Houses In Orange County, CA, For Cash!
Do you want to sell your house for cash and avoid the consequences of foreclosure? We’re here to help. OC Home Buyers is a local, family-owned business, and we buy houses in Orange County, CA.
If you’re dealing with foreclosure and need to sell your house fast, we can help. We’ll make you a cash offer for your house as-is, so you don’t have to worry about making any repairs. We can close on your house in as little as 7 days, and you don’t have to pay any real estate commissions. Get a free quote today.