Having bad mortgage credit can drastically affect and hurt our future. In today’s economic uncertainty, we hear of more and more people losing their homes. Losing a home is devastating enough, but what most people don’t realize is that they have also lost their financial security. The effects of losing this security can go on for years and years and not only affect them but their families as well. Having bad mortgage credit attached to your name can have an impact on what you buy and how you will be able to help your loved ones later in life to obtain the things that are needed and desired. We all think that it will be easy to pick up the pieces to our lives and move on. Sometimes it’s not as simple as we’d like.
The reason that you lost your home makes no difference when it comes to not paying for it. You are still labeled as having bad mortgage credit once you become delinquent. However, there is a difference when it comes to how you handle the situation once you’re behind. After you have fallen behind, the lender will notice what you try to do to remedy the situation. Say for instance, you put your home up for sale because you cannot pay the payments. You are trying to help the situation. On the other hand, you fall behind and do nothing until you are evicted. The person that tried to sell his home is going to get more help than the one that does nothing. Even though they are both going to have bad mortgage credit, the bank is going to be more willing to work with the person that tried to help his situation. Which one do you think will be able to get other loans in the future?
Having bad mortgage credit can affect whether we will ever be able to purchase another home. It can determine what percent and types of interest rates we get for our future loans. Also, it can impact whether we can co-sign for our children’s loans when they get started or if we want to help them get through college. If we never get that second chance to own our own homes again, it can make a difference on whether a landlord will rent to you. Your credit history is used for utilities, rent, and cell phones and much more in today’s society. Imagine living a life where nobody trusted you. Imagine what it would be like to live on the streets, go without electricity, or go without a car to drive to work. Some of us have already been there and done that and want something better for our lives and our family’s lives. Are you willing to do what it takes to get back what you deserve? With a little dedication, you can.