What Happens If I Default on My FHLDS Loan?
If you default on your FHLDS loan, the consequences will depend on your lender and the terms of your loan agreement. However, there are some general steps that are likely to be taken:
1. Your lender will contact you
If you miss a repayment on your FHLDS loan, your lender will usually contact you to let you know that you are in default. They may also send you a default notice, which outlines the amount you owe and the steps you need to take to rectify the situation.
2. Your lender may charge you fees
If you default on your FHLDS loan, your lender may charge you fees for late payments, missed payments, or any costs associated with recovering the debt.
3. Your credit score will be affected
Defaulting on a loan will have a negative impact on your credit score, which is a measure of your creditworthiness. This can make it harder for you to borrow money in the future, as lenders will see you as a higher risk.
4. Your lender may take legal action
If you continue to default on your FHLDS loan, your lender may take legal action to recover the debt. This could involve taking you to court, obtaining a court order to sell your property, or engaging a debt collection agency.
5. You may lose your home
If your lender obtains a court order to sell your property, you may lose your home. This can be a devastating outcome, particularly if you have invested a lot of time and money into your property.