At ABFS Consulting we have reviewed hundreds of foreclosures to know first hand how devastating the process can be. Not only does it play a toll on your mental and physical health, it can take a huge chunk out of your home equity and financial well being. On average, a foreclosure can easily eat up between 15-20% of a homeowner’s hard-earned equity.
Some of the equity eroding costs can include:
- Discounted sale price due to a forced sale – approx. 10-15% of home value
- Realtor costs – approx. 5% of home value;
- Plaintiff legal costs – approx. $7,500-10,000;
- Home inspection costs $200 – $750 and
- The personal cost of the stress from going through foreclosure with no one by your side to guide you through
The biggest cost of foreclosure is the decline in the value of your home simply because it is in foreclosure. Regardless of what your home is worth, buyers will be reluctant to offer full price because you are in foreclosure and they assume they can offer less because the sale of the home is being “fire sold” compared to other traditional homes for sale. A foreclosure sign on your lawn is like the scarlet letter of real estate and is most desired by those looking to make a quick house flip for a profit.
Do not let this happen to you. Please contact us at your earliest opportunity so we can begin working on a strategy to preserve your equity and protect your credit.
