Unfortunately, there are numerous landlords out there that never check a credit reference! Mostly single family homes...apartments are very assiduous in checking credit!

have your clients asked their current mortgage company for a "deed In Lieu Of Foreclosure"?

Kimberly,
Have your clients looked at a short sale or refinancing? I would just hate for them to walk away from any equity they have in their home. Also considering what it will do to their credit. If you look hard enough there are some builder's and homeowners willing to do a lease/option. Now one of the first questions they will ask is how long before they can buy. Then they will ask about how much option money they can put down. If their credit is that bad then look for the private sector for options. Look at the homes that have been on the market for along time these owners have been carrying these homes and just want someone in and paying the mortgage.

>>> "their credit is destroyed for at least another 12 months .."



Kimberly,

For starters .. there is a huge amount of misinformation about foreclosures and what the effects it can - and will do.

If you've been reading any of the info sources like Barrons, CNN, Kiplinger, Fox, Inman News or the Charlotte Observer .... less than 21% of the potential foreclosures are even contacting their lender.

Now .. they'll contact their lease car company, they'll make arrangements for payments for that dentist bill .. but the vast majority won't contact the lender where their biggest debt is now standing.

Their credit won't improve in 12 months or 20 months after a foreclosure .. and depending on the other creditors, their credit will decompose and they won't be seeing anything positive for 5 or 6 years ...

I'm sure they can find a rental in the newspaper or online, your area happens to be one of the strongest in the country and I'm surprised you're getting so many calls.

They need to get with Fico.com or freecredit.com or any of the good sites and sit down and understand their credit so they won't make that mistake again in 5 years.


:^)

Hi again. To elaborate. I have received calls from people that are ready to just throw their hands in the air and move out of state because they are in over their heads with their mortgage, but they need somewhere else to live. They are asking me what to do and they say its too late to save them now. If its too late and their credit is destroyed for at least another 12 months, how is one to "rent" somewhere with a mess on their credit. This would be OWNERS THAT NOW need to rent due to not being able to get a new mortgage on something else less expensive. Just say they have exhausted ALL of their options.
thanks

Kimberly,

>>>>> "before they foreclose and do not know what to do...."


Do you (or they) think their credit will be repaired in the next 6 to 10 months "after" the foreclosure....?


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Can you elaborate on what you're asking a little bit more. I'm confused because on one hand you're discussing tenants and also people getting out of foreclosed homes....but if the clients are serious about buying a home, why don't you have them find a home that they like and rent it. But set up a lease with an option, that will allow them to purchase the home once their credit is repaired and they have spent some time living in the property. hope this helps