| As soon as I hear the word foreclosure, one of the | | | | of this article, let's just say the mortgage was the |
| first words that will pop into my head is CREDIT. I | | | | only account late.) |
| think of what it does to a credit score and how it's | | | | The GOOD NEWS is: It will NOT kill your credit report |
| probably the worst item that could show up on a | | | | for life. You can start re-building your credit almost |
| credit report. I also wonder what the homeowner | | | | immediately, and it will NOT stop you from buying a |
| really understands about his / her credit report and | | | | home in the future. I know this because I have been |
| how it's affected by that foreclosure. | | | | in the real estate and mortgage business for that last |
| The BAD NEWS is: a foreclosure will stay on a credit | | | | 13 years and I've seen many people rebound after a |
| report (in the Public Records section) for 10 years. It | | | | foreclosure. I have also structured many home |
| will kill any chances of you buying a new home for at | | | | purchase loans for people with a previous foreclosure. |
| least 3 years. Some banks will lend money to a | | | | Most of those loans have been underwritten through |
| borrower with a foreclosure that's just over 3 years | | | | FHA (Federal Housing Administration) lenders offering |
| old (That's 3 years from the date your foreclosure is | | | | excellent rates and programs- some with just 3% |
| finished- not from when it started). Also, a | | | | down payments needed by the borrower. |
| foreclosure will drop your overall credit score quite a | | | | If you want more solid, real world facts regarding |
| bit. I should note that lenders who lend to borrowers | | | | your credit after your foreclosure, please see our |
| with a former foreclosure are very picky and | | | | website in the Resource section of this article - it |
| protective. They view this loan as a second chance | | | | may just save your home from the auction block. |
| and they will probably shoot it down if they see | | | | When you read my manual, "How to Stop, Stall or Kill |
| anything late at all on the credit report, even a | | | | you're Foreclosure", it won't take you long to realize |
| bounced check. So if you're trying to purchase a | | | | that you can probably handle this situation by |
| home after a foreclosure, your credit must be | | | | yourself without blindly trusting in a total stranger |
| spotless. | | | | & paying them thousands of dollars. Don't get |
| The CREDIT SCORE: Let's say that your credit score | | | | paralyzed by all of the drama around you - you can |
| was a strong 715, then you had a hardship & | | | | do this! I have coached homeowners (that you would |
| your home went into foreclosure. If you were just | | | | swear are brain dead) to negotiate a new mortgage. |
| late on the mortgage and no other debts, that 715 | | | | If they can do it -so can you. |
| score will probably drop to the low 500 range. (There | | | | If you are about to pay a total stranger $2,500 to |
| are several variables to consider here because your | | | | get you out of this jam, then why on earth wouldn't |
| score is determined by the amount of accounts your | | | | you invest just $50 before you made that huge |
| late on, the amount of debt you carry, the | | | | commitment? I guarantee that our downloadable |
| frequency of the late payments, weather it's an | | | | information will show you at least 3 methods to save |
| installment loan or a revolving loan, and several more | | | | your home, that you had no idea even existed. |
| factors. So each credit report is unique. For the sake | | | | Download it now. |