1) Denial
2) Anger
3) Bargaining
4) Depression
5) Acceptance
Normally
the previous owner
has lost the “luxury benefits” of their medical
insurance
and cannot afford counseling
when they need it the most. Every person feels differently and going
through
the emotional stages can take weeks, months or completely stall for
years.
Moving
on to the financial
consequences after the foreclosure, both parties lose money. The
initiator
loses the original sale of the property and possible takes a knock in
the
auctioning process. The survivor loses almost everything.
Only
the lawyers and the
new buyer make any money in the deal. It is always to your advantage to
always
be in the position to make money and avoid unnecessary risk.
Over-extension
of credit is
the biggest cause of foreclosures as the 2008-2009 credit crisis has
shown us.
The
FICO score of the
survivor is very badly affected and it will be a living nightmare to
try and get
anything on credit.
There
is of course life
after foreclosure. I just don’t want anyone to experience it.
Better to avoid
it like the plague and not be put in a place where you have to
foreclose or be
foreclosed.
Please
obtain local legal
and financial advice tailored to your current specific financial
situation
before engaging in real estate investments.
What
Happens After A Foreclosure?
I
do not have firsthand
knowledge of what happens after a foreclosure. There are 2 sides to
every
foreclosure, the initiator and survivor’s side.
The
initiator is usually
the mortgage lender and they tend to be ok when the whole process is
done.
Don’t get me wrong, it is not their intention to foreclose on
any
property.
They will rather avoid it at all cost.
The
other side of the event
you will find the survivor of the foreclosure. Usually it is the family
being
asked to move out or to pay rent to live in their former home. The
process can
culminate in the property undergoing a private sale to a new buyer or
if there
is a lot of interest the house would have been put on auction.
The foreclosed owner is not in a comfortable place, mentally. They tend to experience the emotions similar to grief. The five emotional states are:
