My husband and I are facing a foreclosure on our rental property and we're considering walking away from our primary residence, a condo, also. Would two foreclosures be just as bad as one?
2007-08-27 11:49:05 · 7 answers · asked by Curious 1 in Business & Finance ➔ Credit
My husband and I are facing a foreclosure on our rental property and we're considering walking away from our primary residence, a condo, also. Would two foreclosures be just as bad as one?
As an added bit of info- we already pursued a short sale with the lender for our rental and they let 6 months pass and 5 buyers walk.
Our primary residence, the condo, has been up for sale for 6 months and we've had 2 offers that were too low for us to afford (we would have been owing money). We can't rent the condo and break even on our mortgage and there are 10 others just
like it for sale with the owners having lots of equity to negotiate with (we used ours to buy the rental).
While we understand that the foreclosure means that we will be renting for a very long time, we're wondering if we should just move before the condo's interest rate goes up and we are paying WAY too much for a one bedroom condo just for the sake of avoiding another foreclosure.
2007-08-27 12:13:28 · update #1
One foreclosure is bad enough, but two, yes, it will lower your FICO score among other credit indicators. If they are occuring at the same time, you are in luck because they are disappearing at the same time (7-10 years after the incident). I've seen credit scores dive up to 200 points after one foreclosure, I can only imagine what another foreclosure will do.
Good luck and if you want to learn more about foreclosures and how the process works (and how to invest in them in the future), read this book: Complete Guide to Real Estate Tax Liens and Foreclosure Deeds: Learn in 7 Days [ISBN 0978834682] by Don Sausa
2007-08-29 13:24:51 · answer #1 · answered by John Rosa 3 · 0⤊ 0⤋
It's going to ruin your credit for a while no matter if it's one or 101. Bottom line is you can't afford your current situation. Why worry about what you can't control? Should you stay in your condo and live to pay a mortgage? Hell no! The credit ramifications are not something you can control at this point. So what!
You may not be able to purchase a home for a few years, but at least you will be able to breath. You are more than a number on a credit report.
2007-08-27 11:59:27 · answer #2 · answered by loancareer 3 · 0⤊ 0⤋
Twice as worse, shows a lose of responsibility credit wise on not only an owned rental property but also with the primary.
2007-08-27 12:14:23 · answer #3 · answered by Pengy 7 · 0⤊ 0⤋
I paintings as a Senior mortgage Banker for a countrywide economic business enterprise. Have additionally worked as a branch supervisor for various banks. interior the sphere on account that 1977. At this component, that must be the least of your concerns, your credit. And it can't be in basic terms 50 factors like our uninformed, yet properly intentioned chum suggested above. ok, the info are it is going to sink decrease then a diving whale. there is not any one set volume of ways low it is going to flow. The issues which could impression your score are distinctive. The credit bureaus save that form of information secret and it truly is distinctive for each between the three national credit bureaus. So no one would supply you an exact answer and if absolutely everyone claims they might, they are flat out mendacity. it is going to take various years to get better and as much as 4 years in the past a classic economic business enterprise will evaluate a clean mortgage to you. besides the incontrovertible fact that, you may get a FHA or VA mortgage 2 years after the date of discharge or dismissal as long as you have no longer had any new undesirable expenses. you're able to besides report for financial ruin, financial ruin 7 or 13. Seven is a finished liquidation of all your materials, yet you're allowed to maintain a definite volume for a automobile or 2 (in case you're married) and garments plus furnishings, and so on. financial ruin 13 is a partial reimbursement of all or a lot of your expenses. you should communicate to a economic counselor approximately your options, no longer a financial ruin legal professional because of the fact they are going to in basic terms choose you report for financial ruin and hire them. you are able to qualify for a clean value card on a secured line of credit. in certainty, you will get invites by using mail quickly when you report for financial ruin. you will additionally get invites for automobile loans. besides the incontrovertible fact that, the hobby value would be very severe. superb of success to you in a puzzling subject.
2016-12-12 13:13:40 · answer #4 · answered by burnham 4 · 0⤊ 0⤋
I'd say that two foreclosures would be three times worse than one. You won't be able to get another home loan for a very, very long time.
2007-08-27 12:06:37 · answer #5 · answered by bdancer222 7 · 0⤊ 0⤋
doesnt' matter really. i'd try really hard to sell the house and the condo before walking away from them. i wouldn't expect to make a profit in today's market...maybe you could get the lender to approve a short-sale. at least you tried.
2007-08-27 12:07:21 · answer #6 · answered by Anonymous · 0⤊ 0⤋
It's like the difference between stepping one land mine or 2...
2007-08-28 04:24:51 · answer #7 · answered by Anonymous · 0⤊ 0⤋