There’s no doubt about it: a financial recovery has far-reaching consequences. In addition to being an emotional bombshell for you and your loved ones, a financial reversal can have serious repercussions for your portfolio and your future plans. Whether we’re talking about the clothes you wear, the vehicle you drive, where you live or where you work, the effects will be felt throughout your life for years to come.
If you have any questions about this, or simply need help, the Vendre Maison Vite team will listen and advise you on what can be done to limit the damage. Just call 514-320-1000.
This article will help you understand what’s coming. That way, you’ll be better equipped to deal with this unfortunate situation, and to act now to avoid the damaging consequences that a financial reversal could have on your business.
You’ll thank yourself for taking the time to learn more about the process and your options. So, without further ado, here are the 4 consequences that a financial recovery will have on your life in Montreal.
The 4 consequences of a financial recovery on your life in Montreal
Refusal
Following a finance repossession in Montreal, a note on your credit file will inform creditors that you are a high-risk customer. As a result, your overall purchasing power will be affected. More often than not, bad credit causes multiple rejections from lenders, whether for a credit card, cash loan or mortgage. And the few financial institutions that deal with customers with bad credit impose excessive annual fees and interest rates, which can easily be avoided when you have a good credit rating. What’s more, some employers may refuse to hire you when they learn about your history.
Financial losses
One of the most common reasons for buying a home is the potential for financial gain. In fact, while the debt is falling, the value of the property on the Montreal market is rising. By investing your capital wisely, you can make hundreds of thousands of dollars! If you own a property and have already invested a good sum in it, a financial reversal could cause you to lose all or part of the gains you’ve made over the years.
Payables
If you act quickly, you could be the person in charge of deciding how and at what price your property will be sold. Read your mail before it’s too late! By taking note of the information sent by your lender, you’ll know what action they might take and how much time you have to act before it’s too late. You still have power until the day finance takes over. If you don’t act quickly, your Montreal home may sell for less than the amount you owe on the mortgage. Since this debt belongs to you, you’ll be responsible for paying the difference. This situation can be very difficult: a large part of your monthly budget will have to be allocated to it, and this could have major repercussions on your pace of life, and that of your family. What’s more, this debt will also be added to your credit file, which is already in a bad way because of the financial recovery.
Housing
A financial recovery will have a major impact on your housing opportunities. In most cases, landlords carry out a credit check when assessing the possibility of renting out their property to new tenants. Obviously, because of your credit history, a landlord who has many potential tenants for his property may refuse to let it to you in favor of a “safer” tenant. On the purchasing side, your options are very limited. Lenders will be suspicious, and it will be extremely difficult to find one willing to grant you a mortgage on a new home.
Facing a possible financial recovery in Montreal can be very stressful. Failure to act on this threat could have serious consequences for your financial situation in the years to come. Don’t wait until the process has begun. Reach out and let the Vendre Maison Vite team help you lift the weight off your shoulders. Send us a message or call 514-320-1000 today.
