I have had one foreclosure on a house due to a bad business deal. This foreclosure isn't final yet, but will be soon. If i want to get out of my house and go with a foreclosure there, both foreclosures will be withing a few months of each other. Would the recovery time for my credit be the same with both foreclosures as it would be with just one???
I realize that my best option would be to sell the house, but i owe more on it then it is worth, so this would be pointless because i don't have the money to make up the difference.
2007-11-09 05:09:00 · 10 answers · asked by labamba32 2 in Business & Finance ➔ Credit
Recovery time will be the same weather you have 1 or 5 foreclosures as long as they were all at the same period of time.
Both accounts will show on your credit for the next 7-years, but the older they are the less affect they will have on your score.
The difference is going to be the hit your credit score is going to take, it's going to be massive.
2007-11-09 05:17:05 · answer #1 · answered by ? 7 · 3⤊ 0⤋
Yes, your credit usually can't get much worse after one foreclosure. A second foreclosure will drag down your score even further, but it can't add much to an already bad situation.
Your credit will also depend on what other debts you have and if you are current or late on them. If the rest of your credit history is good, then the foreclosures will not be as bad. If you've missed a lot of other payments, too, the whole credit record will be very bad.
If you can use a short sale or deed in lieu of foreclosure to stop the foreclosure, try that first. Don't let the bank just take it through the foreclosure process if you can avoid it.
2007-11-12 02:16:23 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Buying a Home With Bad Credit
From Elizabeth Weintraub,
Buying a Home With Bankruptcy or a Foreclosure On Your Credit
Put your fears aside. Just because you have bad credit, filed bankruptcy or gone through a foreclosure does not mean you cannot buy a home. You most certainly can buy a home with bad credit. But you're going to pay more than a borrower who has sparkling credit.
The Waiting Period After Foreclosure / Bankruptcy
The period between bankruptcy filings is seven years, but the ding to your credit report stays for 10 years.
For better rates with a conforming loan, the wait is four years after filing bankruptcy.
FHA guidelines are two years after a foreclosure, which means you could qualify for as little as 3% down.
Hard-money lenders will often make loans six months after filing bankruptcy or a foreclosure, but will a require 20 to 35% down payment. The interest rate will be very high and the loan terms are not as favorable; many will contain prepayment penalties and be adjustable.
Sub-prime lenders (not to be confused with hard-money lenders) can make 100% loans after a reasonable seasoning period, if your FICO is at least 580.
2007-11-09 05:21:21 · answer #3 · answered by BluGrrl 3 · 0⤊ 0⤋
This is one of the worst thing that can happen! Being upside down in a mortgage can be a nightmare in itself, but doing this twice will make your score fall like a jet running out of gas!
I can't tell you how much recovery time your going to need! The recovery time for both should be about the same. This is a situation I've never come across before! If you able to get a mortgage again, you will be required to have a much larger down payment.
Your score is going to take a gigantic hit because of this and your interest rates you will pay are going to be much higher because your a big credit risk.
If you look at my website, there is a part called"how credit scoring works" section. This will help you learn about your credit and it is too long to post here! I try to keep my posts short so everyone has room to post.
2007-11-09 05:18:45 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Each loan on each property will be listed separate if you have to go through with the foreclosure. You will see those on your credit report for 8-10 years.
I don't understand why you would not consider giving the property back to the loan company to not get that second foreclosure on your credit report.
2007-11-09 05:32:50 · answer #5 · answered by annazzz1966 6 · 0⤊ 0⤋
From a lending standpoint, you can get another home loan after 24 months after the foreclosure - assuming that you take care of your credit during that time. Yes it will certainly be a non-conforming loan, but would be strictly rated off your FICO at that time.
2007-11-09 05:47:00 · answer #6 · answered by extremeaz2000 1 · 1⤊ 0⤋
You used a humorous notice "consolidated" while speaking with regard to the loans. in case you refinanced, merely you're on the loans and easily your credit would be harm. If consolidated does no longer mean refinanced, the different credit would be ruined. /
2016-10-01 23:35:03 · answer #7 · answered by sutliff 4 · 0⤊ 0⤋
If there are separate mortgages, they will each report individually. Each foreclosure will remain on your credit for approximately 10 years.
2007-11-09 05:17:07 · answer #8 · answered by Anonymous · 0⤊ 4⤋
You probably will NEVER get another home loan. How did you buy a house that is worth less than you owe?
2007-11-09 05:16:59 · answer #9 · answered by jon_mac_usa_007 7 · 0⤊ 4⤋
You need to go to http://usacredithospital.com/DV5045.htm and see if they can help you dude
2007-11-09 07:54:36 · answer #10 · answered by Anonymous · 0⤊ 1⤋