Foreclosure

Foreclosure is, without question, very damaging to your credit report. All item on your credit report stay there for 7 years, so consider looking into other options. 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 your asking isn't entirely clear: If it something like: If you owe $100 on a $100,000 house, do they still take the entire property? Yes. The foreclosure process and results itself are essentially the same regardless of the amount owed. The amount owed is increased by all the costs of the foreclosure, accumulated interest and late fee's. The property being sold is done so at an auction (or process) that because of the questions regarding the property, and general requirement for cash, is attractive mainly to bargain seekers. Hence less money is generally produced, to pay off more of a debt, than had the troubled party done so themselves. Just like any amounts that are not paid off by the sale remain owing and the debt may still be pursued by the lender, it is generally true that if the foreclosure produces more than enough to pay off that now escalated amount of debt, it will be returned to the one who lost the property.

Real estate laws are established by the state in which the property is located. The foreclosure notice will contain all information concerning the property being vacated, sold, and whether or not the borrower has redemption rights to the property.

If you havent already call the place holding the loan and explain the situation. Ask them if there is a minimum amount you can pay that will hold them over until monies come in. Ask family and friends if they can lend you something. Worse comes to worse you may have to sell some stuff to get the money. If you are involved in a church see if they can lend you the money. See if there is any help through the job you have, explain to them that with no income you are about to lose your home and if they can lend you something. If you have a 401k plan or any assests other than the home see if you borrow against that. You can pull money from a credit card. If your a veteran ask the vets if they can help. Good luck.

Foreclosure is very bad on your credit report. You should do what you can to avoid it. If the bank forecloses you do not pay back the $70,000. However, if they sell the house for less than owed you may be liable for the difference, unless you have mortgage insurance.

You should note that any amount they forgive counts as income to you--you will owe taxes on that amount. Actually both are wrong. The credit score will drop anywhere from 50-200 pts depending on how much other debt you have. Additionally, each state has its own laws regarding paying back the difference. In Texas, you are responsible for the difference between what you owe and the fair market value. So if you owe 200K, the home is valued at 200K, and the bank sells for 190K, you do not owe anything. In some states, you might owe the 10K, but not all.

a lot and it will hurt your credit for 7 years

Your credit rating - or score - is a grade of how well you handle credit and loans. It's an evaluation of your track record for making credit payments and paying off debt on time.

It depends on two things: 1) The length of your credit history i.e. Do you have a track record that lets people see how well you handle credit? 2) The quality of your credit history i.e. During the time that you've had a credit history, have you established a pattern of making payments on time according to the terms of your loan or credit agreements?

It's important to know that the amount of money you make is not a factor in your credit score. A person with a small income who makes credit payments on time will most likely have a better score than a person with a large income who has a history of making credit payments late or defaulting on loans.

A credit rating evaluates the credit worthiness of an issuer of specific types of debt, specifically, debt issued by a business enterprise such as a corporation or a government. It is an evaluation made by credit rating agency of the debt issuers likelihood of default

Credit ratings are determined by credit ratings agencies. The credit rating represents the credit rating agency's evaluation of qualitative and quantitative information for a company or government; including non-public information obtained by the credit rating agencies analysts. Credit ratings are not based on mathematical formulas. Instead, credit rating agencies use their judgment and experience in determining what public and private information should be considered in giving a rating to a particular company or government. The credit rating is used by individuals and entities that purchase the bonds issued by companies and governments to determine the likelihood that the government will pay its bond obligations

I can't give legal advice on here, but generally the answer to that question is "No." Frequently the bank will bid on the home itself at the foreclosure sale to be sure no one steals it for $1, leaving it owed a huge balance that it knows the buyer will file bankruptcy on. So, it bids whatever it is owed and if someone bids more, great - the bank gets paid. If no one outbids the bank, then it gives the house to a realtor and does the best it can. But, the practical effect for the buyer is that the bank received everything it was owed during the sale, even though it was from itself, so there is no deficiency balance owed by the buyer. So, unless your bank opts not to bid at the foreclosure sale, or if you have a second mortgage, then usually it is a good idea to wait and see if the bank ever contacts you with a deficiency balance. If it doesn't, great - you just pay the $4,000 and go on with your life. If it does, file bankruptcy then if necessary. Many people call the sheriff's department (or whoeever does the sale where you are) and asks who bought the house and for how much. If the purchase price was the same as the foreclosure judgment, no worries usually. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts and law, which I do not warrant, and I am not suggesting any course of action or inaction to any person. Speak to a lawyer for specific advice. If you have any questions, please refer to a lawyer in your jurisdiction. Thanks!

Not only do you need a valid hardship as described below, but in order to get approval for what you're asking for in the letter, you need to qualify. For instance, if you're applying for a loan modification, you need to explain your hardship, but you also need to show them why, if they modify your loan, you'll be able to meet this new payment agreement.

I've written several hundred letters by now and I've found that spelling it out for the lender is the best bet. Tell them what program you want, and why you qualify. They are receiving incentives from the government to help you, so assure them that your case fits the requirements. They're most likely to jump on the high odds cases, first, because that's where the money is for them.

A hardship letter should include why you have fallen on hard times, whether it be because you just lost your job, you were demoted, or you have become sick and unable to work. They just want to know that you are trying to make an effort as best you can. Don't worry about embarrasment, be honest and spill it. The more you tell them, the more understanding they will be.

You become a "tenant in adverse possession" and are subject to eviction, using the practices for your area. One can expect it to happen fairly quickly - like no more than a month before the Sheriff (or one who does so in your area), literally moves the possessions onto the street and prevents you from re-entering the premises. States establish laws that pertain to foreclosure procedures, including the time in which the borrower has to vacate the premises. In some states it can be as short as 30 days in other states 180 days or longer.

how many points dose foreclosure decrease your credit score

What is a Hardship?

Reduced Income or Unemployment.

Inability to work due to health reasons.

Separation or Divorce.

Medical Bills.

Business Failure.

Death of a Spouse.

Adjustment in mortgage payment or unforeseen increase in your monthly expenses.

Any other circumstance that cripples your ability to repay your mortgage.

Additional info added by hardshipletters: One thing many people don't realize is that if they've had to care for an ill relative (like your parents, children or spouse) that can be counted as hardship, as well. This often results in inability to work full-time and also in extra expenses.

Probably not. Once the loan is out of compliance, you would need to either refinance it or just pay it off.

Iam bout to lose my house soon, getting divorce!. is it recommended to do a short sale? I am concerned about 1099-C taxes I have to pay to IRS and how bad my credit will be if I want to get a cheaper property later on. does enybody know how much afeccts short sales, is it better than a foreclosure!

Thanks

Such sales are a matter of public record and the information needed can be obtained from the county assessor's office in the county where the property was located. Some states have access to such public information on their websites.

It will hurt you a little more because more money is involved. But just pay your bills on time and this will build up your credit.

A short sale is a sale where the buyer's offer comes up "short." If you're selling your home and you receive an offer that is less than you owe on your house, you've sold it short. It can appyl to a homeowner you wants to get rid of their house, even at a loss. More typically, it used when a homeowner is facing foreclosure. A homeowner with a buyer who offers less than the amount owed on their house can approach the lender requesting they accept the short sale rather than foreclose. The lender is under no obligation to accept a short sale. If you don't have a buyer, you should ask your lender to consider a "deed in lieu." With this option, you're asking the lender to accept the deed to your house instead of (in lieu) of foreclosing. A REALTOR can help you with a short sale. Because there is often little or no commission involved with a deed in lieu, you should speak with an attorney. You can find one through a local bar association lawyer referral service. Usually, they offer a discounted initial consultation.

It sort of depends....not uncommonly, you've been put out sometime before. But, if your there after the new owner buys, he basically has to get you moved out like he would a tenant. Get the Sheriff to do so How long that takes varies by locale...how busy the sheriff is, etc. 2 - 4 weeks is common.

go down to your courthouse and they have a listing there. It also tells you what the house is going to start out at when bidding starts.

Yes, generally if you file a Chapter 13 bankruptcy before the foreclosure sale, you can stop the foreclosure sale and get the mortgage put in current status again. I have filed cases within minutes of foreclosure sales and stopped them (though I don't recommend waiting that late in case something goes wrong, because then you might lose your home). Very generally speaking, after filing the Chapter 13 all foreclosure sales are immediately stopped by order of the Bankruptcy Court, called the "automatic stay" (which generally you want to be sure the court granting the foreclosure knows about so they don't sell it) and then the person who filed the Chapter 13 immediately begins making regular monthly mortgage payments again and also pays a Chapter 13 Plan to the court, and in the plan all mortgage arrearage must be cured over 3 to 5 years. However, if you have filed other Chapter 13's in the recent past, your ability to get the automatic stay may be in jeopardy, so ask your attorney about this if you have filed bankruptcy before. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts and law, which I do not warrant, and I am not suggesting any course of action or inaction to any person. Speak to a lawyer for specific advice. If you have any questions, please refer to a lawyer in your jurisdiction. Thanks!

Yes, generally if you file a Chapter 13 bankruptcy before the foreclosure sale, you can stop the foreclosure sale and get the mortgage put in current status again. I have filed cases within minutes of foreclosure sales and stopped them (though I don't recommend waiting that late in case something goes wrong, because then you might lose your home). Very generally speaking, after filing the Chapter 13 all foreclosure sales are immediately stopped by order of the Bankruptcy Court, called the "automatic stay" (which generally you want to be sure the court granting the foreclosure knows about so they don't sell it) and then the person who filed the Chapter 13 immediately begins making regular monthly mortgage payments again and also pays a Chapter 13 Plan to the court, and in the plan all mortgage arrearage must be cured over 3 to 5 years. However, if you have filed other Chapter 13's in the recent past, your ability to get the automatic stay may be in jeopardy, so ask your attorney about this if you have filed bankruptcy before. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts and law, which I do not warrant, and I am not suggesting any course of action or inaction to any person. Speak to a lawyer for specific advice. If you have any questions, please refer to a lawyer in your jurisdiction. Thanks!

Yea by not paying your mortgage. but seriosly not likely unless you initiate it be claiming B.K.

Find a landlord who will allow you to rent without regard to your credit score. This will likely be a mom and pop landlord and not an apartment rental service, but you will be able to get a place and work on your credit.

Pay you bills on time. Try to get some kind of credit and make sure it is paid on or before the due date. That is what we are doing after our foreclosure 2 years ago.