Question : What are the credit implications of foreclosure and for how long?
We live in Hawaii and our mortgage has become unmanageable. We just found out our house is worth 64k less than we owe. We have good credit though are overextended because of mortgage. No defaults and one 30 day late pay. We want to sell but do not have the credit left to get a 64k loan to pay off the rest of the loan. We desperately do not want to go into foreclosure. Any options anyone is aware of?
- asked by Annie P
All Answers:
Answer #1
Foreclosure has a major negative impact on yourcredit history that will impact you for 10 yearsor more and imapir your ability to obtain otherfinancing including mortgage financing for anumber of years.Call your lender and ask themabout a "short sale". They may forgive thebalance after the sale in order to avoid the timeand expense of a foreclosure.
- answered by mazziatplay
Answer #2
the best website:
http://www.foreclosureinfousa.net
- answered by peter j
Answer #3
The problem is that 64k amount of negative equityyou still owe even after being sold. I wouldcontact the bank to see what can be done. Leasingthe house to someone may be an option but youwould have to be able to get the monthly note younow owe. Worse case scenario is you lose thishouse 7 to 10 years this will haunt your credit.Getting another house or an apartment is verydifficult after a foreclosure. Try to worksomething out before that happens. But do not stopcorresponding with the mortgage company. You willfair better when you keep the lines ofcommunication open with them, or so I I've beentold.
- answered by justice 4 all
Answer #4
Speak with your mortgage company they may let youpay interest only for 6 months or so to see ifyour situation improves. Worth a shot
- answered by Pengy
Answer #5
Please contact your lender to discuss this issue.Do it before your property forecloses. If youdon't already belong, join a credit union, theirhome loan dept. may have some innovative ideas.Whatever the case, please contact your lenderASAP. There are all kinds of creative refinancingideas out there. Explore all of your options.Besides talking to your lender, check around.Readthis article:The Impact of Short Sales /Foreclosures on Credit ReportsSellers may wonderwhether a letting a property go into foreclosurewould be easier and smarter than going through ashort sale. With a foreclosure, and depending onstate laws regarding foreclosure, a seller couldstay in the property, essentially rent free, forfour months to a year before being forced toevacuate. But that fact alone does not mean aforeclosure is better.Whereas a short saleinvolves offering the home for sale, generallylisted through MLS. Potential home buyers willmake appointments to view the home, some will makelowball offers, agents might hold open houses and,in general, a seller's life will be disrupted, allin the hopes that a buyer will buy the home.Basicsof a Short SaleShort sales happen when a lenderagrees to accept less than the amount owed againstthe home because there is not enough equity tosell and pay all costs of sale.Continued at
http://homebuying.about.com/od/4closureshortsales/qt/060907SScredit.htm
- answered by Prickle's Back!
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