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That depends on your starting credit score. If you allow your home to be foreclosed or if you sign a Deed-in-Lieu of Foreclosure. Home owners will take a hit of about 250 points on their FICO score. This means if a their FICO score before foreclosure was 680, it could dip as low as 430. A home owner who wants to buy another home after foreclosure will end up waiting about 24 months before a lender will offer any kind of interest rate that makes sense. During that time you must have a near perfect credit.
The affect of a short sale on a home owner's credit report is much less damaging. The negative on credit may show up as a pre-foreclosure in redemption status, which will result in a loss of around 80 points from the FICO score. It can also simply show up as the loan was paid off and not affect your score at all. This means a short sale with a previous FICO of 680 could possibly see it fall to around 600 or it could remain the same.
There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure. I would advise looking into this first.
What else can I help you with?
Does home foreclosure effect your ability to get a federal stafford loan?
No, it does not
Will a foreclosure on a construction loan have the same effect as foreclosure on an existing home?
Short Answer: Yes. You signed paperwork on the construction loan that would be very similar to the final loan. They will foreclose and sell the house at a sheriff's sale.
When a bank seizes and sells a home to get as much of its loan back as possible?
That is known as foreclosure.
What is the purpose of an equity home loan mortgage?
An equity home loan mortgage is similar to a second mortgage where it is possible to borrow on the equity of a home. This helps reduce financial pressure like facing a foreclosure on a home.
If you file chapter 13 and have a foreclosure are you still able to obtain financing for a home?
Absolutely, there are many programs available to assist existing home owners as well as home buyers with financing home loans after bankruptcy and foreclosure. To obtain a home loan while currently in a chapter 13 bankruptcy it is very important to establish a good payment history. The company that will approve you for a home loan will need to have your payment history. They will also contact the trustee of your chapter 13 bankruptcy to receive permission or an ok to proceed with your home loan. To obtain a home loan after chapter 13 bankruptcy you will need to provide the following to your loan officer. Original schedules of your bankruptcy Discharge documents of your bankruptcy Proof that you have a satisfied discharge Proof that you have established new credit To obtain a home loan after a foreclosure. Maintained or established new credit Applying for an FHA Home Loan there is a waiting period of three years after the foreclosure proceedings have been completed. For Conventional Home Loans you will need to wait five years. Frank Thomas Sr. Loan Consultant www.lowermymortgageratestore.com 480-621-4270
Does home foreclosure effect your ability to get a federal stafford loan?
No, it does not
Will the bank sue you if you foreclose on your home loan?
Yes, the bank will sue you if you default on your home loan and place your house in foreclosure.
Will a foreclosure on a construction loan have the same effect as foreclosure on an existing home?
Short Answer: Yes. You signed paperwork on the construction loan that would be very similar to the final loan. They will foreclose and sell the house at a sheriff's sale.
WHAT is a stand alone second mortgage and what happens to it when a home goes to foreclosure?
A stand alone second mortgage is another loan that is taken out against your home when the first loan is still in order. If your home goes to foreclosure, you will still owe this money as well.
When a bank seizes and sells a home to get as much of its loan back as possible?
That is known as foreclosure.
Where can one get a loan to stop a home foreclosure?
When facing foreclosure, the first thing to do is to try to get a loan from your current lender. If that fails, try getting a loan from other lenders such as Fannie May and Freddie Mac. If that fails, turn to private lenders.
If you are behind on your mortgage will they keep your insurance claim?
If your home is in foreclosure then yes they apply it to the loan balance in the event you loose your home.
Is tax on continuing a second mortgage deductible after filing for a first foreclosure?
Even if you have had a foreclosure, tax on a second mortgage or home equity loan is still deductible.
Who do you contact when scammed on loan?
Personal loan for foreclosure
What is the purpose of an equity home loan mortgage?
An equity home loan mortgage is similar to a second mortgage where it is possible to borrow on the equity of a home. This helps reduce financial pressure like facing a foreclosure on a home.
How soon can you get a home loan after you have had a foreclosure?
Each lender is different. Contact the lender of your choice for that lender's policy.
Can Back taxes loan companies take your home?
Yes they definitely can because if you don't pay your taxes your home will go for foreclosure
