will I ever be able to buy a house again? what if my fanances change and we can afford to buy again in 3 years. will we be able to? or if you foreclose and loos your house to the bank you will never be able to buy again unles you have a HUGE down payment?
2006-10-17 05:55:04 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
If foreclosed upon, you will lose the house, and almost certainly any equity you may have thought you had. Between foreclosure charges and the fact that they want as low an appraisal as practical so that it sells at auction, you almost certainly end up with zero.
Your credit is also trashed, and it's a harder stroke to recover from than bankruptcy. Nonetheless, it can be done. Keep paying your existing bills on time and your rent also, and in about two years you will be able to purchase again. Do NOT declare bankruptcy unless you have to. It makes a bad situation worse.
As for how banks treat people who have been through foreclosure, it's subject to individual lender policy, but about two years out you should be able to find lenders who will not penalize you too much.
It's okay to talk to mortgage "rescue" services, but the vast majority of the time they end up being a really bad idea. I've got them myself, but it's a rare situation where that's your best option. The rates will be much higher than you're paying now. If you can't make your current payment, why would you be able to make one based upon a higher rate? Unless you suddenly got a great new source of income, the answer is likely to be "you can't"
Better option for most folks is talk to an agent about how to sell the property quickly. Even a little bit of a short sale is preferable to foreclosure. Failing that, deed in lieu of foreclosure is not as bad a hit to your credit as actual foreclosure.
2006-10-17 07:34:33 · answer #1 · answered by Searchlight Crusade 5 · 1⤊ 0⤋
First they will sell the home. If there is ANY balance due the mortgage company they will sue you for payment.
Next, yes you can buy again but 4 years is the most common time frame out of a foreclosure. At that time you will need about 10% down or more to be more comfortable to a lender. If you allow this to happen your credit will be trashed any way so filing a chapter 7 may be the best at this point and re-establish some credit soon after is best even if you have to get a secured credit card. NEVER buy ALL the house you can afford. Why? things happen in all of our lives. The car breaks and the A/C goes out, etc. Have an emergency fund in place along with your down payments and closing cost on any future home purchase. By emergency fund --6 months worth of living expenses. You could get fired, sick, any thing bad that can happen---typically happens to the unprepared.
Good Luck
I am a mortgage professional
2006-10-17 06:12:41 · answer #2 · answered by golferwhoworks 7 · 0⤊ 0⤋
Do everything you can not to be foreclosed upon. Call a credit counseling agency to see if they have suggestions. Call your mortgage company to see if you can work out a deal.
PLUS - this is something I have experienced - When you get more than a month behind in payments, the mortgage company always says they won't accept just 1 month's payment. THey want one payment that will catch up up completely. HOWEVER, go ahead and send them a month's payment if you have it. THey will usually take it one time. THen do everything you can to get caught up. Usually, when you are three months behind in payments, they start foreclosure proceedings. However, sometimes they don't wait the three months.
Sometimes your mortgage company will give you a little time to try and sell your house. That might be your best option. Even if you only sell it for what you still owe, this will save you money in the long run. It will save your credit.
IF they foreclose on you, it will show up on your credit report for at least 7 years. It will be very costly for you to repair your credit, because your interest rates will be very high.
2006-10-17 07:29:32 · answer #3 · answered by allkell 2 · 0⤊ 0⤋
Are you in foreclosure because you are in default but can make everything current, but the bank doesnt want to deal with you and are you unable to continue to pay the mortgage?
If you can bring yourself current, there are foreclosure bail-out programs out there with mortgage companies. Mine has one. We will pay off the existing mortgage and start a new mortgage for you. You can save your house and possible your credit.
If you just cannot pay the mortgage altogether. You can be in a house within a few months with 35% down payment. But your rates will be in the double digits. After 2 years with re-established credit since the foreclosure or a Chp 7, you can get into an Atl A program which will allow you to put down as little as 5-10% with rates varying from 8-9%.
You can file a chp 13 to stop the foreclosure, make payments to bring your arrears to date, sometimes the mortgage company will allow a fore bearance - which means they will put the arrears back into your principal balance. You will just have to pay penalties and make sure you are not late on your payments again or they will file foreclosure immediately.
2006-10-17 06:21:37 · answer #4 · answered by Tony M 3 · 0⤊ 1⤋
whilst a house is foreclosed the proceeds from the sale pass against the astonishing stability of the 1st own loan. If there nevertheless continues to be a stability on the 1st own loan then a deficiency judgment is placed on your credit rfile. the 2nd own loan continues to be due. If the astonishing stability isn't paid in finished then yet another deficiency judgement is placed on your credit rfile. although if the financial company determines that the own loan stability is surely uncollectable then the unpaid stability is taken care of as income you won and could be concern to income taxes. The IRS would be notified of this by using the lender. Which lender foreclosed? 1st or 2nd?
2016-10-19 21:17:51 · answer #5 · answered by ? 4 · 0⤊ 0⤋
um ok 1)lose you home----2)credit messed up for awhile-no prob start again junk cards high interest but your rebuilding your credit so live with it---3)if you file --its harder now for bankruptcy then you can buy a home again after like 7 years--no huge down--the houses in the mainland are cheap compared to where i live---
4)see a credit counselor/financial counselor--there are free services out there so look in the yellow pages-----
5)its not the end of the world big finance ---all big finance is mostly a gamble anyways---just pick yourself up and try again--here in hawaii foreclosure is everywhere average house medium price range is 560,000.00-------
2006-10-17 06:45:10 · answer #6 · answered by darkangel1111 5 · 0⤊ 0⤋
Lots of q's. First, you are out of the house. Second, your credit is ruined. You might as well file for bankruptcy
2006-10-17 06:04:15 · answer #7 · answered by super.sweep 3 · 0⤊ 3⤋