Many people enter mortgages without giving proper thought to the level of commitment that they require. A few years down the line, they may realize that their mortgage is draining the bulk of their income and that they would rather prioritize their spending on something else.
There are many reasons why abandoning your mortgage through foreclosure is a questionable option, but some people see it as their best option given the circumstances. The following are some reasons to put effort into defending yourself against foreclosure and committing to your mortgage obligations, even in tough times.
Your credit rating will suffer
If you walk away from your mortgage, your credit rating will drop by 150 points. This is a very significant blow to your financial credibility, and it will take a long time to be able to recover. It may impact your ability to get any other type of loan, including car loans, in the years to come.
You will suffer additional costs as a result
Although you may escape the costs of your mortgage, the very act of walking away from the mortgage can lead to additional costs. For example, you will likely experience increased mortgage rates and challenges in renting a home.
Your life will be uprooted
The memories that you have in your home are invaluable. Uprooting your family from what they know can be extremely stressful and is best avoided.
It can be possible to successfully defend yourself against foreclosure in Texas. In order to do so, it is important that you take early action and that you understand the law.