September 28, 2021 at 3:31pm | Jack Lara
Consequences of a Foreclosure

  • You will be ineligible for a government insured loan for 5 to 7 years (only 3 to 4 years in a short sale).
  • You always have to disclose that you had a foreclosure on any mortgage application and many job applications. You will also be required to disclose a deed in lieu of foreclosure and a short sale. A short sale gives you more control of the outcome and is seen as less damaging.
  • The foreclosure will significantly lower your credit score.
  • Many employers run credit check on job applicants.
  • A foreclosure can cost your current job or prevent you from getting hired.
  • Many jobs and professions require a security clearance. A foreclosure can jeopardize your security clearance.
  • You may face a potential deficiency judgment. If you are foreclosed the deficiency judgment will be larger than if you complete a short sale. And in a properly negotiated short sale the mortgage lender will waive their right to pursue a deficiency judgment against you.
  • There can be a potential tax liability as the unrecovered debt is considered taxable income. In a foreclosure it is not just the mortgage amount but also the court fees, attorney fees, house maintenance fees, etc. that will accumulate against you.
  • I have helped approximately 100 homeowners avoid a foreclosure by successfully completing a "short sale". A short sale can be complicated process that may involve more than just one mortgage. I have helped people with multiple mortgages, IRS liens, code enforcement liens, and even vehicle liens. 
Jack Lara, Broker-Associate
Better Homes & Gardens Real Estate Main Street Properties
1313 Creighton Road
Pensacola, FL 32504

(850) 616-6377
Jack@PensacolaAreaProperties.org



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