Question : How bad is a foreclosure on your credit and how can I best avoid it?
I am not in foreclosure yet, but I recently lost my position and we have very little savings so I don't know that I will be able to save my house. We just got into our home in July and then my company lost a major account and I was out of work. I am doing sales now, but that is commission based and slow to pay. I have no equity in my home per se, and i live in California. I guess I'm wondering with the market the way it is, it might be better to walk away and try again in a few years.
- asked by Donald B
All Answers:
Answer #1
Sell ...it's the only chance you have....otherwiseyour credit would be destroyed for a longtime....you wouldn't be able to even rent in agood place.....you would end up in a crimeriddenroach infested motel somewhere.Good luck.
- answered by dual_reality
Answer #2
How bad is it? VeryHow can you avoid it? Sellthe house or pay the mortgage.Get anevening/weekend job to bring in extra money andkeep looking for a better job. Make sure you cutall non-necessary things out of your expenses. This basically means anything other than water,electric and basic food. Everything else shouldgo.
- answered by personal_finance_101
Answer #3
CALL YOUR LENDER....THEY DONT WANT YOUR HOUSEBACK...IF YOU ARE WITH B OF A YOU ARE INLUCK...THEY WILL DO ANYTHING THEY CAN TO AVOIDTAKING YOUR HOME BACK...IF IT IS ANOTHER COMPANYTHEY MAY DO THE SAME THING......IF ALL ELSE FAILSAND YOU SEE NO WAY OUT YOU CAN FILE AREORGANIZATION THRU BANKRUPTCY...THIS WILL ALLOWYOU UP TO 5 YEARS TO CATCH UP, BUT YOU MUST PAYYOUR CURRENT MONTHLY PAYMENT PLUS A SMALL PORTIONON THE BACK AMOUNT.......AS A LAST DITCH EFFORTAND YOU WOULD RATHER GIVE IT BACK....TRY SELLINGIT FOR THE BALANCE ON THE LOAN....LIST IT ONCRAIGSLIST ....ITS FREE OR IF YOU WANT JUST ALITTLE ABOVE, TAKE THE EXTRA AS A SECOND WITH ADUE DATE OF TWO, FIVE YEARS OR WHATEVER TERM YOUAGREE ON...HAVE THE BUYER PAY ALL CLOSINGCOSTS....YOU MOVE OUT, YOUR CREDIT ISSAVED.....THE SECOND ON THE HOME MUST BE SATISFIEDBEFORE IT CAN BE RESOLD...SO EVEN IF THE PERSONWHO PURCHASES THE HOME FROM YOU DEFAULTS, THEMORTGAGE COMPANY MUST PAY YOU OFF BEFORE THEY CANRESELL THE HOUSE....IT IS A WIN, WIN FOR YOU.
- answered by madcutter213
Answer #4
Dude. You are in CALI, so you KNOW you have anoppressive mortgage given that you don't have anyequity.I have three recommendations.1) Sell2)Sell3) Sell.It is no used rearranging the chairsof the deck of the Titatanic when you know fullwell it is in the process of sinking.And don'tever forget that real estate in the South is HELLACHEAP when compared to CALI. You don't have todefer the dream if you are willing to leave ahousing bubble environment.
- answered by DaMan
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