Effect of home foreclosure?
My home is now valued very less than what I owe on my loan.. Is that a better idea to foreclose the house and if so what is the procedure and how it will affect me. Or there any other option..? Please advice. Thanks.
A home foreclosure will devastate your credit rating (as it should). You will lose a minimum of 200 points, probably more! It will also prevent you from buying a house for at least 2-3 years.
When you signed the note and agreed to the payments, you didn’t agree that you’d pay only if the property remained at the same value or increased, you said that you’d pay for it. If the property went up by $100,000 would you expect the bank to share in the profit? No? Then why do you expect the bank to share in the loss?
My advice is to keep paying as agreed. Especially if you don’t have to move and you aren’t having trouble making your payments.
good luck!
March 13th, 2010 at 9:49 am
You might try a short sale or deed in lieu of foreclosure. Either way you have to be past due before the mortgagee (lender) will talk to you.
realtor.sailor
References :
I’m a Realtor
March 13th, 2010 at 10:05 am
A home foreclosure will devastate your credit rating (as it should). You will lose a minimum of 200 points, probably more! It will also prevent you from buying a house for at least 2-3 years.
When you signed the note and agreed to the payments, you didn’t agree that you’d pay only if the property remained at the same value or increased, you said that you’d pay for it. If the property went up by $100,000 would you expect the bank to share in the profit? No? Then why do you expect the bank to share in the loss?
My advice is to keep paying as agreed. Especially if you don’t have to move and you aren’t having trouble making your payments.
good luck!
References :
March 13th, 2010 at 10:15 am
The ideal situation is for you to hold on until home prices increase. You might even be able to sell for a profit in 2 years or 10 years. No one knows the future.
If you can not hold out, stop paying the payments. The bank will take the house back in 6 months. You move your stuff out. Some banks will pay you $500 "Cash for Keys" if you will leave the house in good condition and drop off the keys. Your credit score drops to 600.
The other option has not been very successful but you can apply to have your loan balance or payment lowered enuf for you to keep the house for 10 years.
References :
March 13th, 2010 at 10:39 am
Avoid foreclosure rescue scams. There are a lot of them out there. As foreclosures continue to mount across the U.S., so do the number of con artists trying to take advantage of families with claims that they can rescue their homes from foreclosure.
From phony counseling, to bait-and-switch and rent-to-buy schemes.
Know what you are signing.
Get promises in writing.
Make your mortgage payments directly to your lender or the mortgage servicer.
Be very careful about signing over your deed.
References :
Neighborhood Link
http://www.neighborhoodlink.com/article/Homeowner/Avoiding_Foreclosure_Rescue_Scams