Americans are getting deeper in debt these days. In most cases, this issue isn’t a matter of reckless spending or a lack of responsibility. Instead, it’s simply due to surging living expenses and flatlining household incomes. With the cost of utilities, groceries and other necessities constantly rising, financial hardships are becoming more common by the day. This makes coming up with monthly mortgage payments increasingly difficult. In fact, according to a recent U.S. Foreclosure Market Report, more than 360,000 foreclosure filings were recorded during the first half of last year alone.
Understanding the Scope of the Problem
Americans are being hit hard by current economic issues in more ways than one. Struggling to meet monthly expenses alone is enough to generate ample worry. Add to that the prospect of losing their homes to foreclosure, and stress levels go through the roof. Many are also faced with extensive repair needs they can’t afford. In a few areas, the housing market itself is working against those trying to sell their homes through conventional means.
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On top of all that, foreclosures can have a significant impact on other aspects of life. They leave families searching desperately for new places to live, often without enough money on hand to cover the first month’s rent, security deposits and having utilities connected. Foreclosures can also have a negative effect on credit scores unless companies like Cash House Buyers DFW are able to intervene.
How Does Foreclosure Affect Credit?
Foreclosures have been known to wreak havoc on credit scores. Some sources indicate the higher a person’s credit score is, the more a foreclosure stands to lower it. In fact, those who start off with a score of around 780 can expect their ratings to drop to 640 or below following a foreclosure or similar type of settlement. At the same time, this will appear on a person’s credit report for as long as seven years.
Why Does This Matter?
Credit scores aren’t just random numbers; they matter for several reasons. For one, they affect people’s buying and borrowing power. Seeing a low score on a credit report makes lenders leery of potential borrowers. Though some cater to those with low or no credit, interest rates increase dramatically for borrowers in this range. A drop of only a few points can leave a person paying a great deal more for a loan in the long run once interest is factored into the equation. Keep in mind, credit rating can also influence the landlord’s decisions when it comes to renting out their properties. Some employers even base hiring decisions on applicants’ credit histories.
Any number of issues can lead to financial difficulties. Divorce, job loss, and long-term illness are only a few of the most common. In some cases, people simply need to sell their homes via sources like http://www.cashhousebuyersdfw.com/contact-us/ or others in the non-conventional real estate sector because their jobs require them to move or the property in question needs more work than they can handle.
Letting the property go or following through with a foreclosure has a tremendous impact on a person’s credit score. In turn, it can hamper the ability to get a loan, buy a vehicle and rent a home among other necessities. A foreclosure could be considered a last-resort option, but certain other opportunities may be available to help avoid some of these issues.
Company Name: Cash House Buyers DFW
Contact Person: Owner
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Address:2310 North Henderson Ave #1034
Country: United States