Foreclosure - What Happens After?
Kathy at Shak & Jill asked a question on her blog today that not enough people are asking - what happens to all of the homeowners who have been foreclosed on by their lender?
It is impossible to turn on the TV or read the newspaper and escape someone from the news media drone on about the number of owners in foreclosure. While that number is large, I think Kathy has brought up the real story that we should be talking about - not how did we get here, or how bad is it out there, but what happens to the owners that have lost their home.
Homeowners are thrown into foreclosure for any number of reasons. 99% of the homeowners out there in foreclosure did not wind up in that position because they chose to stop paying their mortgage. More likely than not they experienced something such as a job loss, illness or other catastrophic event that caused a financial hiccup. That one missed payment then started to snowball into a larger and larger amount that eventually became so large it would be impossible to make up.
Owners who are foreclosed on have their credit ruined so they are unable to get back on their financial feet. The debt that they are saddled with as a result of the foreclosure makes it necessary for them to sell most of their possessions that are of value which include their autos. This makes getting to and from work an ever growing challenge and because of the damage to their credit they are unable to get a car loan or afford a used one that will run. Unable to get a mortgage they enter into the rental market and are forced to pay for a home but not experience any of the benefits that are afforded to owner occupants. Foreclosure can ruin a homeowners life and they should do everything they can in order to avoid this outcome.
Pundits - Instead of repeating how bad it is out there - please spend some time informing the rest of America what is happening to their friends, families and neighbors.
Photo Credit : spankyblu1
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foreclosure : 
new jersey : 
real estate : 
homeowner help
