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A Foreclosure is a legal process through which a banker tries to recover the outstanding loan dues from a home loan borrower, who has defaulted in making payments to the banker. The banker will realize the dues by forcing the sale of the asset, given to the banker as a collateral security for the loan. A banker or the mortgagee as he is called in banking parlance, obtains a termination of a mortgagor, equitable right of redemption, either by court order or by operation of law after following a the prescribed statutory procedure in this regard.
The foreclosure process is normally applied to residential mortgage loans given by a bank repossessing the immovable property after the owner has failed to repay the loan arrears to the lender as agreed originally upon. When the process is complete, the banker can sell the property and keep the proceeds to pay off its mortgage loan dues and legal costs, if any.
Since foreclosure is resorted to after the borrower defaults in his payment, the credit rating of the borrower is adversely affectd. This will impact badly the borrower's loan payment record , also called CIBIL report, and he may find it difficult to get loan from banks in future. So it is always better to pay the bank dues on due dates without fail, to keep our records clean and pure.
M.J. SUBRAMANYAM, XCHANGING, BANGALORE
Wiki User
∙ 11y ago
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Can you re-fi your primary home after losing an investment property to forclosure?
Yes. You will need to have at least a 620 credit score, and it has to be at least 3 years after the forclosure. Yes. You will need to have at least a 620 credit score, and it has to be at least 3 years after the forclosure.
How does foreclosure impact my credit score?
Foreclosure can have a drastic effect on your credit score. Your credit rating decreases with missed payments on your home, as well as other bills. In addition, the foreclosure itself can lower your score by over 100 points. In addition, a foreclosure can stay on your record for seven to ten years. Forclosure can and will have a very negative impact on your credit score. This is an unfortunate by product of the recent economic crisis.
Can you obtain a home equity loan on a family home that does not have a mortgage?
Yes, as long as you have a good enough credit rating to qualify for the mortgage.Yes, as long as you have a good enough credit rating to qualify for the mortgage.Yes, as long as you have a good enough credit rating to qualify for the mortgage.Yes, as long as you have a good enough credit rating to qualify for the mortgage.
Does Foreclosure affect credit score?
If you have to ask this question i can see why your home was forclosed, Of course it does, If you buy a brand new car and dont pay for ot and it gets repo'd dosent that effect your credit? Yes. Ok now how many cars can you buy for the price of a house 3-4. Okay so a forclosure is like 3-4 reposessions. Make sence???
Which companies offer home equity to homeowners with bad credit rating?
A great company for homeowners with a bad credit rating is Bad Credit Home Equity. They have a website that is quite easy to find. Another solution to the problem would be to find small business lenders in the area.
How will a va forclosure effect my credit?
I think it is safe to say that a forclosure of any type will destroy your credit worthiness. A home lone should be the last possible thing you let slide.
Can you re-fi your primary home after losing an investment property to forclosure?
Yes. You will need to have at least a 620 credit score, and it has to be at least 3 years after the forclosure. Yes. You will need to have at least a 620 credit score, and it has to be at least 3 years after the forclosure.
How does foreclosure impact my credit score?
Foreclosure can have a drastic effect on your credit score. Your credit rating decreases with missed payments on your home, as well as other bills. In addition, the foreclosure itself can lower your score by over 100 points. In addition, a foreclosure can stay on your record for seven to ten years. Forclosure can and will have a very negative impact on your credit score. This is an unfortunate by product of the recent economic crisis.
Can you obtain a home equity loan on a family home that does not have a mortgage?
Yes, as long as you have a good enough credit rating to qualify for the mortgage.Yes, as long as you have a good enough credit rating to qualify for the mortgage.Yes, as long as you have a good enough credit rating to qualify for the mortgage.Yes, as long as you have a good enough credit rating to qualify for the mortgage.
Does transferring a home equity loan to a lower interest unsecured credit card have a positive or negative effect on one's credit rating?
It helps because when you transfer the loan, you are actually "paying it off".
How will voluntary repossession of my home in Texas affect my credit?
The effect on your credit will depend on how the lender chooses to report it to the credit bureau. Sometimes a lender will be willing to report it 'paid as agreed' or 'settled' entry on the credit report rather than an actual repossession. If it is reported as an actual repossession or foreclosure it will be on your credit for seven years and negatively effect your rating.
What is the generic way to avoid forclosure?
The generic way to avoid forclosure is to refinance or get an additional loan float to keep the home from forclosure. This allows the individuals to maintain in their homes as well as allows the banks to receive a higher yield, versus the forclosure amounts.
Does Foreclosure affect credit score?
If you have to ask this question i can see why your home was forclosed, Of course it does, If you buy a brand new car and dont pay for ot and it gets repo'd dosent that effect your credit? Yes. Ok now how many cars can you buy for the price of a house 3-4. Okay so a forclosure is like 3-4 reposessions. Make sence???
Which companies offer home equity to homeowners with bad credit rating?
A great company for homeowners with a bad credit rating is Bad Credit Home Equity. They have a website that is quite easy to find. Another solution to the problem would be to find small business lenders in the area.
How can one check their credit rating from home?
There are a number of firms in the UK that allow you to check your credit rating from home. Firms such as Experian, Checkmyfile and Equifax offer online services that show your credit report. As at May 2013, many of these firms offer a free 30 day trial of their services.
Will having bad credit make it difficult for you to get a home loan?
A bad credit rating will make it difficult for you to get a home loan. Lenders don't want to lend money to people with low credit scores.
What are some things people with a bad credit rating can do to purchase a home loan?
The best way to repair a credit rating is to start paying off delinquent accounts. Lowering one's debt-to-income ratio and developing a history of current positive credit can help in raising one's credit score to purchase a home loan.
