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What are the effects of foreclosure on credit?

Posted on: 22nd Aug, 2007 05:09 pm
We are not yet in foreclosure, but are soon facing it. We have had our house on the market over a year and are sinking fast. What happens to our credit when they finally foreclose? What are the lasting effects? and how long does it effect your credit? Any and all information regarding this will be helpful and appreciated.
Foreclosure will result in your credit score dropping by a lot and it will remain on your report for the next 7 years. You will have problems getting loans after foreclosure appears on your report.

You need to take steps so that foreclosure can be avoided. Can you give more details, then I would be able to tell whether any other options are still open for you to explore or not.

Miller
Posted on: 22nd Aug, 2007 05:15 pm
Posted on: 22nd Aug, 2007 06:48 pm
Hi Terrib,
The greatest of foreclosure is that you lose your home. It really has a lasting effect on your credit as it leaves a derogatory mark on your credit report for at least 7 years. And if you still owe the balance even after foreclosure, the lender may probably file a suit against you in the court.

So before going for foreclosure, you must talk with your lender so that he can suggest you with some loss mitigation plan.
Posted on: 22nd Aug, 2007 08:25 pm
"The greatest of foreclosure is that you lose your home."

can u pls explain this larry. think you've missed something.
Posted on: 23rd Aug, 2007 02:00 am
Hi Deborah,

Yes I missed a word. Actually I meant to say the greatest 'problem' of foreclosure. Thank you for pointing the mistake.
Posted on: 23rd Aug, 2007 04:53 am
Oops! It's me. I FORGOT TO LOG IN.
Posted on: 23rd Aug, 2007 05:15 am
can you do a deed in lieu when you have a second mortgage
Posted on: 25th Jun, 2010 11:21 am
Hi Beth,

You can apply for a deed in lieu of foreclosure though you have a second mortgage. If the second mortgage was taken by you to purchase the property, then you won't be liable for any deficient amount resulting from the sale of the property. However, if you've taken a second mortgage later on, then you would be liable to pay it off after your home is sold off at the auction.

Thanks
Posted on: 27th Jun, 2010 09:29 pm
If your house was foreclosed, it will show up in your credit report and will drastically decrease your credit score. It will also remain on your credit report for seven years which will make it hard for you to get new loans or apply for new credit. I would suggest that, if you still have time, try to negotiate with your lender your financial situation so he or she can lay out options that you are willing to take. Check your credit report and score before discussing situation with your lender so you can be concise about what you want to do with your house and how you will be able to pay for it.
Posted on: 01st Mar, 2013 12:46 am
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