If someone has not paid mortgage in 12 months is credit as bad as if it goes to foreclosure?

Asked by Ange, 85268 Thu Nov 4, 2010

Mom has not paid mortgage in 12 months on a house that is in the son's name. Is his credit already ruined or will it be worse if they let the bank have the house back? The house is in Pennsylvania. Will they try to come after his main house that is Maryland?

Help the community by answering this question:

+ web reference
Web reference:


James Wehner’s answer
James Wehner, Agent, Scottsdale, AZ
Fri Nov 5, 2010
A real estate attorney in each state should be consulted with for advice on this situation. Typically as soon as you go 30, 60 or 90 days late on a mortgage, you credit will be rough shape. If he is just behind for the 12 months and reinstates the loan by bringing it current, then of course it will not be affected the same as if it went through foreclosure. If it goes through foreclosure, then the foreclosure will remain on his credit report for several years and may impact the ability to obtain any future home financing in those next several years.

Depending on the situation and the local attorney's advice, you son may consider doing a short sale. A short sale will typically cause less damage to an individual's credit than a foreclosure would.

Best of luck!!
Web Reference:  http://www.jameswehner.com
1 vote
Roswell Moore…, Mortgage Broker Or Lender, Scottsdale, AZ
Sun Feb 20, 2011
Hi Angie,

If the bank doesn't foreclose, there will not be a recorded record of foreclosure, HOWEVER, if the brother/son tries to get a mortgage, his credit report will show these mortgage lates that will be interpreted by the underwriters as a foreclosure, even though he hasn't "officially" gone through the foreclosure process.

In any event, unfortunately, his credit is in the shredder!

All the best,

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct

We are a Direct Lender, Mortgage Bank where we originate, process, underwrite and fund, in-house, FHA, 203(k), VA, USDA, Jumbo, Conventional, loans to Canadians, Australians & other Foreign Nationals, on time. NMLS ID 263779 | AZ BK 0903725
0 votes
Linda M Sale, , Chandler Heights, AZ
Tue Jan 4, 2011
I would not throw in the towel on keeping your credit score up. Clearly 12 months of past due will make if very difficult for you to get another home loan for 3 or 4 years, but it would be good to write the story of how it happened while fresh on your mind. Try to keep everything else current so that when the time comes, a lender will be more lenient. Good luck to you.
0 votes
Jason Whaley, Agent, Mesa, AZ
Fri Nov 5, 2010
Usually, they can't come after his main house. There is just a deficiency issue depending on the deficiency laws in that state. As far as the credit goes, 12 months of lates, will be retty bad as there will also be 30-60-90-120 day lates and from talking to certain credit repair people, 120 day lates are kind of like a Foreclosure. Seek an attorney's advice on the deficiency issue
Web Reference:  http://www.SearchAZmls.com
0 votes
Myra Gouger, Agent, Las Vegas, NV
Fri Nov 5, 2010
It depends on whether you had one mortgage or two and if PA is a deficiency judgment state. By not paying mortgage payments for one year it significantly lowers your son's credit score. Shelter is one of the items weighted more heavily for the total FICO score. If your state is a deficiency judgment state and you had a second, the second can come after your son for 7 years. After 7 years, they can give this collection to a new collection agency and it can start all over again. CONSULT WITH AN ATTORNEY WHO SPECIALIZES IN SHORT SALES!!! In deficiency judgment states, yes they can put a lien against your son's primary home and attach his assets.
0 votes
Scott Godzyk, Agent, Manchester, NH
Fri Nov 5, 2010
The foreclosure will be more damaging than the lates. The lates will cycle through in 24 months where the foreclsoure will remain for 7-10 years. You need to contact the bank, ask for the home retention department and ask about a forebearance or loan modification, soem banks can work on a combination of 2 . if you do not quailify becuase you have zero income, then ask for the documents they require and sell it via a short sale which is better than foreclosure.

Please see my blog with advice on how to complete a short sale
0 votes
Tim Grossgla…, Agent, Scottsdale, AZ
Fri Nov 5, 2010

I have sent my clients to consult with Attorneys in Town that offer free Consultations. For the most part, not paying a mortgage is of course damaging to credit. Although history and credit reports show that they just show up as late payments. A Foreclosure will show up far worse and can stay on a credit report for 7-10 years.

Most attorneys, after you speak with them, will suggest to try and avoid a foreclosure at all costs.

Feel free to contact me if you have any more questions or need to know a few numbers of attorneys to speak with.
Web Reference:  http://www.4closure911.com
0 votes
Randy Hooker, Agent, Chandler, AZ
Thu Nov 4, 2010
The son seriously needs to consult with an attorney in PA, and then perhaps a professional counselor. ;-)
0 votes
Dan Tabit, Agent, Issaquah, WA
Thu Nov 4, 2010
Both are damaging, but I believe the foreclosure is worse. If you are able to work with the lender the damage may be lessened. Generally a short sale will have less long term ramifications than a foreclosure. If it's possible to start making payments and the lender will modify the loan, this may be the least damaging.
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more