What does a foreclosure do to your credit?

Asked by Andrea, Grand Rapids, MI Fri Oct 3, 2008

We are a 2 home couple, both me and my fiance owned homes when we merged. We had tried to rent it out for awhile with devastating results ~ $1000's of dollars in repairs. The city had also found out we were renting it so out taxes went up ~ $200 a month. We finally got fed up with this toilet of a house and tried to sell it, knowing full well we were hoping the bank would approve a short sale. We got an offer 5 days in ~ it is now 3 months later, and with lots of negotiation and $5000 cash from us, we were to close within the week. The buyers offer expired 2 days ago, and now they are backing out. I don't feel we have any options other than to let the bank take it, but would like to know the effect this will have on my fiance's credit.

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Joel Youngs, , Jacksonville, FL
Tue Jul 7, 2009
Andrea; The fact that it will not effect your credit now is good,but if you get married will there be problems down the road. You are one of 2.4 million people facing this in2009 alone.. it's getting worse too. But, If you are short selling your house then you are much better off. A few late payments beat a foreclosure any day. Feel free to send me an email at jnjhomes4u@aol.com or call me 800 918 3008 and I can get your property in the NationalQuickSale.com data base to help facilitate quickly.And yes we can help stop the foreclosure. That is the worst possible solution for America to recover. We need sales not empty houses. As far as your $5000. Thebank is going to lose allot more than $5000 if they foreclose.Keep your money and let the bank take the hit.A short sale will help all.
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Dylan Borland, Agent, Plymouth, MN
Fri Oct 3, 2008
I would suggest not going the foreclosure route , i have seen it devastate many of my clients credit and takes year before they can even come close to buying a home again, especially with the restructuring of the lending industry that is taking place right now, not just home loans but all loans, this could devastate you, i have seen many attorneys give advice to just walk away, in my opinion that’s not ethically right, don’t give up on the home, hang in there with the right real estate agent and for the right price your home can be sold, most of the times homes are not sold because their not priced right and the Realtor really does nothing to sell it. But if its not listed with a realtor i would suggest getting it listed asap.

-Dylan Borland, Realtor
Coldwell Banker Preferred Realtors
Plymouth MI real estate
(734) 416-9516
email: dsmborland@yahoo.com
website: http://www.esuoh.com
Web Reference:  http://www.esuoh.com
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smith3gary, Agent, White Lake, MI
Fri Oct 3, 2008

I suggest you look at the information and assistance the State of Michigan has available. In my opinion, your lawyer and financial planner would be the correct sources of information.

Save the Dream http://www.michigan.gov/mshda/0,1607,7-141-45866_47905-177801--…

Avoid Foreclosure http://www.michigan.gov/ag/0,1607,7-164-34391-180413--,00.html

You may also want to see if your fiance lender is participating in the HOPE for Homeowners Program

Web Reference:  http://mi-living.com
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Andrea, , Grand Rapids, MI
Fri Oct 3, 2008
We are not currently being foreclosed on, I just am not getting any other options. My fiance owns this house and it has only his name on it. We live in my house, with only my name on it. We cannot afford to make the house payment on that house. Obviously, because we were 3 months into a short sale, I am exploring all of our options. They backed out. Done deal. Do we need to wait another 6 months to get an offer, 3 months for the short sale to go through, and then still be told we need to come up with $5000!
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Dallas Texas, Agent, Dallas, TN
Fri Oct 3, 2008
The $5K would have less of hit than a foreclosure on your credit. Talk with the bank determine if you can continue payments than a foreclosure try to sale the home. Foreclosure will dump your credit be years before you can qualify for another loan, line of credit, or mortgage. Long term vs. short term. Good luck
http://www.lynn911.com http://www.homes-for-sale-dallas.com
Web Reference:  http://www.lynn911.com
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Rose Mary S…, Agent, Northville, MI
Fri Oct 3, 2008
Who is handling the sale? With a contract in hand many times they can speed up a contract, but no doubt it is tough. Have your agent ask the buyer to hold on and be sure the agent has authority to talk on you behalf. Do you have 2 loans? This can cause delays. Don't give up, having a contract in 5 days is excellent. You can take more than one contract in at a time with a short sale. Your agent should keep the house in an active status. I have seen as many as 5 contracts come in during the process. Foreclosure is not the way to go if you can avoid it. It'll mess up your credit for 10 years.
Make sure your agent is aware of how to handle the short sale. There still is hope after all you can always extend an expiration date.
Web Reference:  http://www.rosesimms.com
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