Are You a Homeowner Facing Foreclosure? Have you discovered the option to avoid foreclosure? Here are some of the reasons why you should avoid a foreclosure:
- Avoiding the foreclosure stigma – Homeowners always need to disclose that fact that they have had a foreclosure on any mortgage application that they submit in the future. That can hurt your future mortgage rates. Currently, there is no limit on disclosing a foreclosure when a creditor asks you.
- Protecting your credit score – Credit scores can be lowered by as much as 300-plus points as long as a foreclosure is on your credit report. On a short sale, the impact is about half that.
- Improved eligibility for government insured loans – It takes seven years for foreclosures to disappear from your credit report though the effects of the event will lessen over time. If you have a short sale, you get an even earlier reprieve, because your loan can be re-sold after three years. A foreclosure o your credit report is one item that is almost impossible to have repaired.
- Protect employment prospects – When applying for a job, know that many employers run credit checks on prospective employees. Don’t put your future employment prospects at risk by having a foreclosure on your record.