2007-06-30 07:47:47 · 5 answers · asked by Mary B 1 in Business & Finance ➔ Renting & Real Estate
You will be freed of the debt. It will stay on your credit report for 7 years. Unless you owe more on your home than it's resale value it might be best for your credit to try and sale it first. The foreclosure process will go through a 3 step process: First notice of default will be filed after you quit making payments this could be 1 month or 6 months depending on lender. Then a notice of foreclosure is filed. Last is a notice of sale on the property. After the notice of sale is filed there isn't much you can do except pay off the amounts owed and this depending on the state you live where I am it's usually 21 days from notice. At this time you have to be out of the home by a certain date and that is the end of the process and your debt is freed and the bank now owns the property.
2007-06-30 08:00:52 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You should try to avoid foreclosure at all cost if possible. What is the reason behind you letting your house go? Is there no equity in the property, is your payment going up, did you lose your job? Will it not sale or can you not rent it out? You should talk to an experienced loan officer about your situation before you get too far behind.
As far as yourself, they will give you ample notice about the process. The will first file the Notice of Default and then the last step will be the Trustee Sale Notice that your house will be sold at an auction within a few weeks. The whole process can take anywhere from 3-6 months depending when they start the Notice of Default.
While I am in no way a tax adviser or giving adivce, it is my understanding that when the lender sells that house and if they take a loss, you could be held liable for that loss as additional income. They will report it to the IRS. Double check with a CPA if you are upside down on your house.
Good luck and feel free to email me with any questions.
2007-06-30 16:12:55 · answer #2 · answered by lenderjayne 3 · 0⤊ 0⤋
They will sell your home, add fees and try to collect what you owe. Your pay will be garnished probably. Your FICO score will go down and stay down for a long time, you may not be able to rent an apartment. Buying a car or home will cost you really high interest rates for the next several years, any credit cards you have will go to default rates.
2007-06-30 14:55:46 · answer #3 · answered by shipwreck 7 · 1⤊ 1⤋
You'll be evicted. You won't be able to rent from a reputable landlord. They always check for evictions.
You'll ruin your credit rating for the next 7 years and beyond. You won't be able to get credit, or if you can, it will be at loan shark rates.
Don't let this happen to you. You'll be homeless either way, so sell the house yourself, move out, pay the bank, and save your credit rating and rental worthiness.
2007-06-30 14:56:31 · answer #4 · answered by Lisa A 7 · 1⤊ 1⤋
Homeless? your credit go really bad ... foreclosures will stay on your credit for a long time
2007-06-30 14:51:13 · answer #5 · answered by Anonymous · 1⤊ 0⤋