I am behind on mortgage payments, now face forclosure, is my credit already ruin with the late payments on it?

Question

I fell behind on my mortgage payments, tried to work with the mortgage company with a repayment plan, but was unable to pay last months payment. Now they are going to start forclosure. My question is will forclosure hurt my credit even more than it already is with having late payments on my credit?

Answer 1

If relevant - 62 years of age or older - look to a reverse mortgage. If not, look to bankruptcy lawyer or downsizing.

Answer 2

I run a large residential lender and face frequent borrowers in this position. If you have not yet enetered into foreclosure you should determine exactly how much you are behind and then take immediate action. Once it enters foreclosure there will be a multitude of additional fees added my the lender and every blood sucking attorney that even looks at the file. Do not ignore the issue unless you intend to do nothing.

There are a few possible solutions and I tell this to people all the time. The order of priority here is simple...they go from least expensive solution to the most expensive solution:

1) Ask family or friends for temporary assistance. This is by far the cheapest solution yet many people would rather save face than their home...amazes me sometimes. Even if you qualify to refinance, the current credit score and mortgage rating would not help you get a payment you could afford. Yet if you paid the mortgage current the score rebounds over a relatively short period (6 mo - 1 yr), and within 2 years most lenders disregard the lates.

2) Refinance the home. This will stop foreclosure and could provide cash out of equity to pay consumer credit cards etc...these are the things that most drastically improve the scores and will get you back on track quickly. This solution requires that you have equity left in the home. How much depends on income, total debt, home value etc. There are also private lenders that will disregard income and debt ratios to help you qualify but the interest rate is more like a credit card and they won't loan more than 70% of the homes value.

3) Sell the home. This also stops foreclosure...provided you sell it before the official Sale Date for the foreclosure happens. This option usually means sacrificing equity for a quick sale. The only benefit is that it prevents foreclosure.

Answer 3

Foreclosure is deadly to your credit. Try to prevent it at almost any cost.

Have you tried to refinance with another company? Your mortgage holder only wants to be paid. A refinance can lower your monthly payments, but will drag out how long you will be paying. Talk to your current mortgage company before they get this into court. Move fast as they won't give you much time.

Watch out for hidden costs and predatory lenders that really are after your house. Get a real estate lawyer to help you. If you have 3 - 4 weeks you can save your home this way.

Answer 4

Hi,if your in the UK go to citizens advice they might be able to
help stop the bank from starting forclosure.Pay them has much as you can.Have you any family that will lend you the money to get the morgage payment.If you can & cannot afford the in coming repayments I would put my property up for sale at least that way you could pay the bank & maybe have enough money left to pay other debts & start again.I know its hard has I have had my ups & downs.Forget your credit rating the importent point is getting your morgage sorted.Goodluck

Answer 5

Any previous due value is asserted as a detrimental on your credit checklist for seven years, whether the very next value thoroughly will pay-off the debt. if so, the previous due value will teach as being your maximum recent value, whether it got here approximately countless years contained in the previous. subsequently, do no longer make the blunders of following a prior due value with an entire pay-off (which consists of the sale of a mortgaged homestead). To re-set up good credit, a prior due value would desire to be accompanied by potential of a protracted and stable background of huge-unfold on-time money, until eventually the previous due value is elderly off the credit checklist.

Answer 6

every single late or missed payment is on your record, and it will ruin you in less time than you think. Being placed in forcloseure is worse, but if you can avoid it going through, then your credit will not be as bad as when the foreclosure is final. It goes in stages and adds up, if you want to think of it that way...

Answer 7

you need help--go make an appt with a credit counselor --there are some free types=look on the internet and the white pages--they can help re-do your finances and break the payments up into smaller installments---also they can help talk to the bank and get your credit back to normal--------------there is nothing that can't be fixed--think positively

Answer 8

Ahh yeah.

Get a lawyer. Foreclosure is a nightmare. Unless you have kids. They seem to be a little more foregiving when you have little kids in the house. Not much though.

File bankrupcy.

Stop buying stupid things too.

Answer 9

They both are making your credit look awful. You have to start making every other payment on time and give it time.

Answer 10

yes alot more....just move on in life