I have 6 properties and am considering foreclosing on 2 of them as they are vacant rentals,

lynettevm · Joined: 17 Sep 2008 Posts: 1 1.34 Dollars($)

I have 6 properties and am considering foreclosing on 2 of them as they are vacant rentals,..and unable to sell due to the market. How will the foreclosures effect my future purchase of a property and can this credit be restored before the 10 year mark? Will the credit naturally rebuild with the other 4 properties? Can the other properties be effected by the 2 foreclosures?

jameshogg · Posted: Wed Sep 17, 2008 11:12 pm Post subject:

Hi lynettevm,

Welcome to forums.

Did you negotiate with the lender/mortgage company for a suitable workout option so that you can pay off the loans on the 2 rental properties? I'm suggesting that you look out for an alternative payment plan because foreclosure will no doubt affect your credit in the sense that it will drop down your credit score by at least 250 points or even more.

Obviously you can restore your credit prior to the 10 year mark. In fact, negative items get reflected on your the credit report for 7 years. But if you can try and keep making timely payments on other debts, I hope you'll be able to rebuild credit within 1-2 years.

Guest 0.10 Dollars($)

Thanks for your response. I am working with one of the banks now and am looking to do a deed in lieu of debt. Also, I think by putting the other properties into a land trust they can be protected, true? Finally, I live in Illinois.
Thanks again, I'll take any other ideas you have.

Caron · Posted: Fri Sep 19, 2008 5:53 am Post subject:

Hi Lynette,

I do know that land trusts can protect properties against liens and judgments. So, yes you could protect the other properties from being affected by foreclosure. However, if you are going for deed in lieu, the other properties won't be affected.

Good luck

All times are GMT - 7 Hours

Page 1 of 1