I HAVE 2 HOUSES (1 INVESTMENT) I ONLY CAN AFFORD ONE HOUSE ,... HOW LOW MY SCORE WILL GET , IF I GO TO A FORECLOSURE?
the market price of the house 165k
2006-12-16 01:12:33 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
IM TRYING TO SELL IT (INVESTMENT HOUSE)
2006-12-16 01:27:32 · update #1
It will drop your credit score a lot, but it's even worse than that. You're credit report will be 'Red Flagged' as having a foreclosure, which will adversely affect your ability to get a mortgage in the future...but it's even worse than that! People mistakenly think that because a foreclosure will disappear from their credit report in seven years it's 'not that bad'. This is wrong thinking because mortgage applications ask you for a disclosure for whither or not you have 'EVER' had a foreclosure or bankruptcy.
If you have to make a choice between credit cards and a mortgage, pay the mortgage. The credit card companies will scream and moan and damage your credit, but they will be happy to start receiving payments in the future. Foreclosure is much more serious in the world of lending.
2006-12-16 03:36:40 · answer #1 · answered by KC 4 · 0⤊ 0⤋
Assuming your upside down on the investment house (owe more than its worth) could you sell it at a loss and get an unsecured loan for the balance then pay that off over time? This would save your credit rating at least. Or can you lower the rent to cover most of the mortgage payment and just cover the loss every month?
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2006-12-16 05:06:25 · answer #2 · answered by RichDaddy 2 · 0⤊ 0⤋
to not be impolite, yet while your credit has already dropped to 571, a forclosure won't make lots difference in view which you will not be able to get any corporation credit of any variety with the 571. As for what the variety would be, who knows, yet i think of that if forclosure is the only way out, that's what's going to could ensue. in case you start up attempting inventive the way you may scratch by without forclosure, you will finally end up making issues worse interior the tip.
2016-12-30 12:27:33 · answer #3 · answered by calvete 3 · 0⤊ 0⤋
Is it possible to sell the house? You should try that first. It wouldn't hurt to put it on the market, you never know...
2006-12-16 01:16:48 · answer #4 · answered by kalamibe 2 · 1⤊ 0⤋
a forclosure is concidered a major derog like a bk or repo - it would devastate your credit for about 2-3 years
2006-12-16 02:12:36 · answer #5 · answered by Anonymous · 0⤊ 0⤋
it will hurt your credit score a lot. An unpaid account makes you undesirable as a credit risk.
2006-12-16 01:34:16 · answer #6 · answered by anya_mystica 4 · 0⤊ 0⤋