Should I just walk away from my Royal Palm Beach home?
Leaving a home that you have grown to love – especially one you have also spent your childhood and most years of your life in – is a heart-wrenching thing to do. But if the threat of foreclosure looms, walking away from your Royal Palm Beach home may be the best solution all around.
Bad Credit
In fact, that’s saying it lightly. Depending on your pre-foreclosure credit score, you could end up getting a below average credit score that will practically cross you from every lender’s book. Worse, foreclosures are not the type of financial transaction that’s easy to wipe out from your record. It will remain there for years to come.
Loan Applications
A pre-foreclosure loan is hard enough to get as it is. Imagine how more difficult it would be if you ended up needing a loan after foreclosure.
You have to understand that foreclosures – no matter the circumstances – are a mark against you. They will not in any way endear you to any private lender or banker. If you do get a loan, rest assured that its interest rates and terms would be a lot more demanding than usual.
Tax Bills
Granted, you won’t pay a penny when your home is subjected to foreclosure proceedings. That’s your lender’s problem. Your problem starts when the next tax period comes along since the amount of debt which has been forgiven is taxable in the eyes of law.
Job Employment
If you do not walk away from your Royal Palm Beach home, then yes there’s a good chance that you will be able to enjoy living in your own home “rent-free”. But all good things come to an end, and your rent-free vacation will end once the court reaches a decision about your case. After that, you would have lost your home for good. With a foreclosure marked against you, it would be more difficult for you to apply successfully for a job.
If, however, you had chosen to walk away – such as by short selling your home – you would have just lost your home a little earlier than expected. On the other hand, you would have avoided having foreclosure marked against you and your job prospects would significantly improve.
When considering the consequences of foreclosure, it’s very important to look at it on the long-term. Don’t allow yourself to dwell too much and too long on what will happen on the short term. If you do, losing your Royal Palm Beach home will probably be the least of your worries.
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