What happens to your credit if you foreclose on a house?

Answer 1

The foreclosure will show up on your credit report for the next seven years. If you apply for a mortgage loan in the future, you may be asked to provide an explanation. Standard ("A paper") mortgages typically require there to be four years since a significant derogatory event like a foreclosure, but may allow 2 years with a documented extenuating circumstance. Your ability to re-establish good credit following the foreclosure will be looked at very closely.

The foreclosure will significantly impact your credit score. A credit history with a foreclosure may result in you being denied credit or offered credit at significantly higher rates and/or fees.

Answer 2

If YOU foreclose on a house....Nothing happens to YOUR credit.....If the bank forecloses on YOU then your credit score is pretty much screwed up for the next 7 years...You would be better off to pay your bills as you agreed to when you took out the loan..ss
However, if you keep your credit in good standing after the foreclosure you will probably be able to buy another home in about 3 years with a higher interest rate and possibly a down payment..

Answer 3

Nothing, if you are the fore-closer? Now, if you are the
foreclosee (one being foreclosed... losing your home?)
well, then it will in all likely hood influence your credit record!
As any non payment of obligations would do! Many lenders would work with you, if you sit down with them and work on the problem! I am sure that many people are going through this problem right now! Many homes were sold during periods of lower home interest rates, without a fixed rate! (Adjustable Rates)
(one which floats either upward or down with the interest rate market)! However, what can come down, can also rise! Many people were first time buyers, and special incentives were offered to get them homes. The interest then rises and what happens, the payment (most of which is interest in early years)
goes up to reflect those higher interest rates They are caught in a bind! Adjustables are fine when interests are going down, but watch out when they rise! You might pay a bit more (higher rate)
on a fixed mortgage, but you know your payment will stay the same, no mater what the interest market!
Here is a question for you? If interest rates are at historical
lows when you buy, with an ARM, what are the chances of them going up, instead of setting a new HISTORY LOW?

Answer 4

Your credit will be ruined however you can still buy things on credit at some companies but the interest rate will be out the ying yang.I found out not by forclosure but mounting medical bills you can get cars at some of the dealerships here in N.C. but this is for late model used cars the apr is loke 28.9 or sometimes higher and once you have anything major or minor on your credit report it's very very hard to get it removed.Wish there was a way you could prevent this from happening but I know things are tough all over I wish you well.Also there are some companies that will buy your home to keep it out of forclosure I do not know how they work but ask your bank or whoever you have your home finianced with cause they really do not like to forclose on a home it cost them thousands of dollars of dollars to do it I reccomend that you go to this site and ask this guy to give you some help his name is Clarf Howard ,he is a radio host who is an expert on matters such as this.There is a toll free # where you can call him live you do not have to tell your name but he knows all the stuff for all 50 states and I think you will be somewhat pleased if you go to clarkhoward.com and find out if you you can get him on the radio and the time if you can't get him on radio you can write him on that site and he will get back to you usually within 2 to 3 days.Good luck I hope there is a way you may be able to keep your home if that's what you want and if not I hope you can at least keep your credit and don't even go there with the pride thing cause you are not the only person who has been or the first to go through this just keep your head up and God will put you where He wants you to be wherever that is!

Answer 5

You mean if the bank forecloses on your house. It is ruined for 7 to 10 years.

Answer 6

I think I just answered the same question from someone else 2 seconds ago....

Dont do it...your credit will go down the toilet----mortgage companies and banks would rather work out a repayment plan rather than take your house---try for even a short sale if you are that desperate...just dont go into foreclosure, it will affect everything you do for the next 10 years.

Answer 7

Yes you are always responsible for any outstanding amount that is not met by the sale proceeds. And, yes, your credit rating will be adversely affected by allowing foreclosure. Payments cannot increase because of the foreclosure on unrelated bills unless you fall behind in payments on those. Reading the contract relevant to each debt should help you make sense of it all, hopefully.

Answer 8

It will go way south. Well under 500 and may take awhile to rebuild. To be able to get another home. I would look for a lender to help get a foreclosure buyout loan really fast. Or sell you home as soon as you can. Or ask someone for some money to help get caught up in full.
Foreclosure is one of the worst things to do your credit...Good luck.....

Answer 9

Very bad move. If you are close to foreclosure, you should try to work something out with the bank. They would rather work out something with you then take the house back.

Answer 10

Its better to file for bankruptcy then foreclosure