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Do the credit rating agencies look at a mortgage settlement in a negative way will they look at it like a foreclosure and how long will this be on your credit report?
Wiki User
∙ 16y ago
If the home was a short sale, many investors will view that like a foreclosure. Please proved more details on the type of transaction this was.
Wiki User
∙ 16y ago
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How does a foreclosure work if you have negative equity?
A foreclosure really has nothing to do with the amount of equity in a property. Banks foreclose on properties because the borrower has failed to pay on the mortgage note for 90 days or more. Most properties that are foreclosed on today usually have negative equity in them due to decreased property values.
Can I surrender a home and not be in foreclosure?
Yes, it's called a Deed-In-Lieu of foreclosure. You agree to walk away from the home and deed the property back to the mortgage company. This will still have a negative impact on your credit, but not as bad as a foreclosure. Most of the time, a Deed-In-Lieu is a cheaper option for the mortgage company as well because of all of the additional attorney fees/costs associated with the foreclosure process. However, a lot of mortgage companies still have rather restrictive guidelines for accepting a Deed-In-Lieu, some of these restrictions may require the mortgage has already been delinquent for some time, and that the property has been listed for sale at fair market value for a minimum of time (usually 90 days). Because the mortgage industry is struggling, these guidelines are ever changing and often can be bypassed. Call your mortgage company to find out what their specific guidelines are for accepting a Deed-In-Lieu. If you haven't already put your home up for sale, it would be a good place to start. If you can get a reasonable offer, even if it's less than the mortgage, your mortgage company may accept a short sale, which will be better for your credit and will also save the mortgage company money.
How long will a foreclosure be on your credit report and how will it effect your credit score?
A foreclosure can stay on your credit report for over ten years. It will have a significant and negative impact on your score.
What if you had a foreclosure and it is not on your credit report?
It sometimes takes a month or two to be added as a negative on your credit report.
Can a foreclosure be removed from your credit report?
Foreclosures can be removed from your credit report like any other negative item. You must dispute it to the credit bureaus. The credit bureaus will have 30 days to verify the foreclosure or it must be removed from your credit report. With the higher amount of foreclosures lately you have a better chance of it being removed. UPDATE: Actually, you can force Equifax, Experian and TransUnion to remove a Foreclosure from your credit report and you can do it legally using a federal law that is in place. Credit Bureaus MUST have "verifiable proof" of the "foreclosure account" in their files if they are going to report the negative item on your report. The dirty little secret the credit bureaus don't want you to know is that they do not have any "verifiable proof" in their files for any of the negative items on your credit report. The bank that held your mortgage may have this information on file but the credit bureaus don't. If you request the credit bureau to provide you with the "verifiable proof" that they have in their files they will remove the negative from your file.
What happens to my credit score when my investment property goes into foreclosure?
Foreclosure of a property hits your credit report in a very big, negative way. Lenders generally look very unfavorably upon foreclosures. Try to avoid it. There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure.
What is in a mortgage contract that releases the mortgagee from the contract if the property value decreases to negative equity?
There is no such clause in the usual mortgage. In fact, negative equity is a huge problem worldwide at the moment. Millions of homeowners are "upside down" on their mortgages, many are facing foreclosure and many are simply walking away from their homes.There is no such clause in the usual mortgage. In fact, negative equity is a huge problem worldwide at the moment. Millions of homeowners are "upside down" on their mortgages, many are facing foreclosure and many are simply walking away from their homes.There is no such clause in the usual mortgage. In fact, negative equity is a huge problem worldwide at the moment. Millions of homeowners are "upside down" on their mortgages, many are facing foreclosure and many are simply walking away from their homes.There is no such clause in the usual mortgage. In fact, negative equity is a huge problem worldwide at the moment. Millions of homeowners are "upside down" on their mortgages, many are facing foreclosure and many are simply walking away from their homes.
How does a foreclosure work if you have negative equity?
A foreclosure really has nothing to do with the amount of equity in a property. Banks foreclose on properties because the borrower has failed to pay on the mortgage note for 90 days or more. Most properties that are foreclosed on today usually have negative equity in them due to decreased property values.
Can foreclosure of investment properties result in the selling of your own home?
In theory yes, but in practice I doubt it will happen. The bank will start the foreclosure procedure with your investment properties, ultimately these properties will be sold and the proceedings used to settle the mortgage loan. In most situations the proceedings will be enough to pay off the mortgage and you are entitled to the surplus. However if the proceedings are not enough to pay off the mortgage you can and will be forced to pay it off with other funds and eventually bankruptcy can follow and your home will be taken. And please do not forget that even a foreclosure on investment properties will have a negative impact on your credit score.
How is credit standing affected by a foreclosure?
A very negative!
Are you liable if your spouse has a foreclosure but your name is not on the loan or the final deed when it was signed back to the bank?
The liability in foreclosure comes from the responsibility for the mortgage debt. Regardless of your legal ownership or interest in the home, you do not have liability for the mortgage debt if you are not a party to the loan (did not sign). The home is the collateral for the loan and can be foreclosed and sold as recourse when the loan goes into default. While everyone who has an interest in the home loses their rights to the home when it is foreclosed, the liability for the loan and any negative actions associated with that (collections, lawsuits, negative credit reporting) belong solely to the signers on the loan.
Can I surrender a home and not be in foreclosure?
Yes, it's called a Deed-In-Lieu of foreclosure. You agree to walk away from the home and deed the property back to the mortgage company. This will still have a negative impact on your credit, but not as bad as a foreclosure. Most of the time, a Deed-In-Lieu is a cheaper option for the mortgage company as well because of all of the additional attorney fees/costs associated with the foreclosure process. However, a lot of mortgage companies still have rather restrictive guidelines for accepting a Deed-In-Lieu, some of these restrictions may require the mortgage has already been delinquent for some time, and that the property has been listed for sale at fair market value for a minimum of time (usually 90 days). Because the mortgage industry is struggling, these guidelines are ever changing and often can be bypassed. Call your mortgage company to find out what their specific guidelines are for accepting a Deed-In-Lieu. If you haven't already put your home up for sale, it would be a good place to start. If you can get a reasonable offer, even if it's less than the mortgage, your mortgage company may accept a short sale, which will be better for your credit and will also save the mortgage company money.
How long will a foreclosure be on your credit report and how will it effect your credit score?
A foreclosure can stay on your credit report for over ten years. It will have a significant and negative impact on your score.
What if you had a foreclosure and it is not on your credit report?
It sometimes takes a month or two to be added as a negative on your credit report.
Can a foreclosure be removed from your credit report?
Foreclosures can be removed from your credit report like any other negative item. You must dispute it to the credit bureaus. The credit bureaus will have 30 days to verify the foreclosure or it must be removed from your credit report. With the higher amount of foreclosures lately you have a better chance of it being removed. UPDATE: Actually, you can force Equifax, Experian and TransUnion to remove a Foreclosure from your credit report and you can do it legally using a federal law that is in place. Credit Bureaus MUST have "verifiable proof" of the "foreclosure account" in their files if they are going to report the negative item on your report. The dirty little secret the credit bureaus don't want you to know is that they do not have any "verifiable proof" in their files for any of the negative items on your credit report. The bank that held your mortgage may have this information on file but the credit bureaus don't. If you request the credit bureau to provide you with the "verifiable proof" that they have in their files they will remove the negative from your file.
What are your options to get a foreclosure that you have cured removed from public records in CO?
Once they have found a solution that allows them to save their house from foreclosure, many homeowners would like to delete any mention of the proceedings from their credit or property record. Because the foreclosure was cured and the mortgage either reinstated or paid off, they should be able to get it off of their histories, right? Wrong. Too often, the fact that a house went into foreclosure will haunt the homeowners long into the future. On the credit record, having a string of late mortgage payments leading up to the foreclosure will severely damage the owners' scores. Being able to solve the problem before losing the house completely may not impact the history in a significant way, since the negative payment history is often not far enough removed in time. It will take a number of months to begin repairing the credit if the homeowners were able to save their home, and it may take years to qualify for a new loan if they lost the house to the foreclosure. Getting the foreclosure removed from the credit report is also extremely difficult. It can be done, but it is unlikely and would take much work on the part of the property owners. In essence, to remove a foreclosed loan from the credit history, the debtors would have to persuade the mortgage company to request that the credit reporting agencies no longer show it on their records. Otherwise, there is usually no way to get a foreclosure removed in order to boost a credit score. County records are even more difficult to remove once they have been recorded. Because the county keeps all documents that ever affected a particular property, they will not be willing to delete any foreclosure or other lawsuit court documents from appearing in relation to the house. Counties even keep foreclosure, deed history, and mortgages from previous owners, so that anyone can perform a title search through public records and verify ownership and liens. The fact that the county is most often the keeper of all these historic documents means that homeowners who faced foreclosure, even if they were able to save their house, will always have those documents in their name in regards to the house. Their ability to stop foreclosure does not negate the fact that the documents were filed in the first place. On the positive side, however, is the fact that, once a house is taken out of foreclosure, those documents will also be recorded and anyone searching the property will be able to see that the owners prevented the loss of the home. Public records and credit agencies often keep documents for far longer than homeowners would prefer, especially if they are constant reminders of a financial hardship. The credit agencies only keep foreclosure records for 7-10 years, while county records are kept virtually forever. It is possible, but unlikely to remove a foreclosure from a credit report, but essentially impossible to get the county to hide away those documents. After all, they are only providing a history of a particular property, and foreclosure can play a role in the history of a house.
Does foreclosure affect the credit of heirs?
No; property ownership interest and financial liability for any loans on the property are separate. A mortgage loan is the responsibility of the signers on the promissory note, and negative credit information may only be reported on those signers in the case of delinquency or foreclosure. The only way heirs could end up having their credit affected is if they refinance or transfer the debt into their names and sign a new loan note. Heirs can inherit the property, and therefore be affected by actions taken against the property (an inherited home can still be taken by foreclosure), but they are not legally liable for debts; the estate of the decedent is, and therefore no negative credit reporting will occur for the heirs.
