What to Expect Following Forclosure

According to the Nashville Business Journal, foreclosures in the city are continuing their upward trend. Based on information released by CoreLogic on Jan. 13, 2011, Nashville foreclosures increased during the month of October, 2010. Journal reporter Eric Snyder cited, “According to the data, 1.58 percent of outstanding mortgages were in foreclosure in October, an increase of 0.33 percentage points over October 2009. It marks the fourth consecutive month in which the local foreclosure rate has increased.”

While this news may seem discouraging, it’s important to note that the local Nashville foreclosure rate is well below the national rate, which is 3.33 percent.

Carla Hill, writer and producer for Realty Times, touches on the effects foreclosures have on the previous homeowners. The term itself – foreclosure – has become so ubiquitous during the recent economic downturns that it’s easy to forget about the aftermath caused by losing a home.

Hill cites a negative effect on your credit score as one of the biggest impacts of foreclosure. “Your credit score may plummet by 200 to 300 points…the notation of foreclosure stays on your report for up to seven years,” she claims.

On MSN’s real estate website, additional consequences are outlined. They include:

• The immediate impact of being without shelter.
• The problems faced when trying to buy another home or obtain a job where a credit check is required.
• The struggle of living through the loss.
• Being required to pay taxes on the difference, based on how much of the owed money could not be recouped by re-selling the property.

If you’re facing foreclosure in Nashville, forethought is paramount. Knowing what to expect can help you navigate the post-foreclosure process more easily. Speaking with a knowledgeable Realtor is also advised. Contact Todd Taylor at email hidden; JavaScript is required.