The current market is forcing many homeowners to look at foreclosure,
short sale, or home loan modification to stay above water. I always
recommend that my clients explore all their options and not jump into
the choice that seems quickest or easiest. Each of these options has
its downside. Do your research!5 Reasons To Avoid Foreclosure
- The homeowner will always have to disclose they have had a foreclosure on any mortgage application.
- Credit scores can drop by 300+ points, which can affect the ability to get a car, apartment, credit cards, and more.
- A foreclosure is the one credit report item that is almost impossible to be "repaired".
- Military and government security clearance could be at risk with foreclosure.
- Many employers run credit checks on prospective employees and foreclosure is one of the top items that will put a potenetial new hire in jeopardy.