I placed a home I have in Tx for sale 4 months ago. I can no longer afford to pay for 2 homes. The house in tx will more likely be foreclosed. At the present time I am still current with the mortgage payments. I would like to know how will foreclosure affect my credit rating which is now averaged at 698.
2007-01-16 02:56:30 · 6 answers · asked by ynina 1 in Business & Finance ➔ Credit
If you can not rent out the house, filing chapter 13 bankruptcy will protect your home from being foreclosed upon.
It is hard decision. I had a friend who went through something like this but miraculously her house sold the month the foreclosure process started.
But it is hard to wait for a miracle at a time like this. Go see a Bankruptcy lawyer and see what he says. Most of the time the first consultation is free.
2007-01-16 03:14:11 · answer #1 · answered by Kris 3 · 0⤊ 0⤋
For a very similar situation a found a great solution at: QUOTEHELP.NET-
RE Facing Foreclosre?
I placed a home I have in Tx for sale 4 months ago. I can no longer afford to pay for 2 homes. The house in tx will more likely be foreclosed. At the present time I am still current with the mortgage payments. I would like to know how will foreclosure affect my credit rating which is now averaged at 698.
2014-10-13 05:26:49 · answer #2 · answered by ? 1 · 0⤊ 0⤋
The bank foreclosing will auction your home. They will sell it to the highest bidder, which is going to be less then you are trying to sell it for. Then you will owe the difference. (Ex- you owe $100K, bank auctions home for $70K, so now you owe $30K). The debt will be listed as a forecloser, which will hurt your score, but in addition to that, you have a bill to settle anyway. You need to lower the price, there is absolutly no way the bank is going to forgive you the debt. They don't care how much the home auctions for, they'll just bill you the difference. In addition, you have no legal rights because you own two homes. So the bank doesn't have to follow any time lines to allow you to arrange new housing. They will sell quickly, they won't clean the home, paint it, cut the grass, nothing. Credit will be your last concern when your paying for a house a stranger is living in. You will be unpleasantly surprised how cheap they will sell for. You really need to hit the streets and sell your house. Throw your own auction, clean the house, cut the grass, do anything you can. (a real estate agent would be a good person to have on your side, they can help.) Good luck, probobly the most stressful thing that will ever happen to you. Wake up early in the morning until the house is sold or you'll regret it.
2007-01-16 11:44:34 · answer #3 · answered by Tim 6 · 0⤊ 0⤋
Foreclosure with seriously damage your credit. Drop the price or sell only for however much you need to pay off the mortgage and your realtor. Speak with your mortgage broker to see if they can work out a deal. They would much rather you pay them than to foreclose.
2007-01-16 11:02:09 · answer #4 · answered by Phoenix, Wise Guru 7 · 0⤊ 0⤋
Foreclosure/late pays on mortgages are much worse than cc's or small loans. I'd be surprised if it diddn' drop you atleast 100 points.
Can you drop the price considerably and get it sold? Or even just rent it out?
2007-01-16 11:07:15 · answer #5 · answered by Anonymous · 0⤊ 0⤋
yeah your credit will suck, they will short sale you home and then come after your other property for the differance
2007-01-16 14:38:00 · answer #6 · answered by Dan P 1 · 0⤊ 0⤋