How badly does a foreclosure on a home damage your credit?

How badly does a foreclosure on a home damage your credit?

It can and will damage your credit pretty bad. There are options available to help the affected individual before it is too late, if they take the time to make phone calls. On a slightly better note, there has been recent rule changes to some forms of financing that will allow a person with a foreclosure on their record to recieve a new home loan after just 2 years. But in the 2 years after a foreclosure, they need to make all efforts to improve their credit and have no other derogatory marks on their credit history during that time frame. Put simply after a foreclosure, make all bill payments on time everytime if the affected person want to own another home in the future.

Google "effects of foreclosure . . . " and you can pick and choose your information from there. Bottom line is it has an adverse effect as Crewdawg points out.

Any in this situation should take the initiative and happen to the situation instead of letting it come to you. Sell stuff, get an extra job(s), cut expenses to the bone and get this place on the market. Even if upside down on the house (or car, or anything) one can lessen the hurt if you have to sell for less than owed.

Be informed. With the resources available to us we should all be fully in the know on any financial situation we find ourselves in. Don't ask the person at work ask the person in the mirror. He/she is the only one who really cares about you.

Google "effects of foreclosure . . . " and you can pick and choose your information from there. Bottom line is it has an adverse effect as Crewdawg points out.

Any in this situation should take the initiative and happen to the situation instead of letting it come to you. Sell stuff, get an extra job(s), cut expenses to the bone and get this place on the market. Even if upside down on the house (or car, or anything) one can lessen the hurt if you have to sell for less than owed.

Be informed. With the resources available to us we should all be fully in the know on any financial situation we find ourselves in. Don't ask the person at work ask the person in the mirror. He/she is the only one who really cares about you.

:yeahthat: I agree with all that you said! For those that might look at this post here is one site that can provide you with valuable information to avoid or lessen the pain of a foreclosure. HOPE (Home Owners Preserving Equity): Foreclosure Prevention/ Assistance Program (http://www.mdhope.org/)

Here's my situation. My ex and I have a home in both our names. When we separated last year we agreed that he could keep the house. He was supposed to refinance and have it in his name only. Obviously, he didn't do it. Bacause of his addictions, he no longer has a job and as a result can't make the mortgage payments. So I am going to get my credit all shot to hell because of him.

Here's my situation. My ex and I have a home in both our names. When we separated last year we agreed that he could keep the house. He was supposed to refinance and have it in his name only. Obviously, he didn't do it. Bacause of his addictions, he no longer has a job and as a result can't make the mortgage payments. So I am going to get my credit all shot to hell because of him.

so boot his ass out, move back in and save your credit

Unfortunately you are right. If the agreement was between the two of you and the ex did not do their part that is not going to matter. As far as the bank is concerned the same arrangement still exists.

If the agreement turned into a court order and he did not follow it I suggest going to your lawyer and seeing what can be done on your behalf legally. I'm out of my depth here so I'll stop it at that suggestion.

Crewdawg lists a reputable site to search for help. Be very careful as you surf. There are many out there who are prey'ing on desperate situations. Use only very reliable, reputable sources.

how far behind is he? I would try to refi the home in my name and ask him to move out...but I don't know your situation...refi's are not easy if you have any kind of bad credit....

Didn't you hear? There is virtually no penalty for walking away from your debt anymore.

Here's my situation. My ex and I have a home in both our names. When we separated last year we agreed that he could keep the house. He was supposed to refinance and have it in his name only. Obviously, he didn't do it. Bacause of his addictions, he no longer has a job and as a result can't make the mortgage payments. So I am going to get my credit all shot to hell because of him.

Why would you make oral agreements with an addict, lols. You stupid.

Here's my situation. My ex and I have a home in both our names. When we separated last year we agreed that he could keep the house. He was supposed to refinance and have it in his name only. Obviously, he didn't do it. Bacause of his addictions, he no longer has a job and as a result can't make the mortgage payments. So I am going to get my credit all shot to hell because of him.

My first question is can you kick him out move back in and get the payment issues fixed? I have a friend that just moved into my house because of foreclosure so I know a little about this. I am also a Realtor that is trying to help a client out of a bad divorce situation currently while avoiding foreclosure. VBailey has it close, I suggest calling your motgage holder/lender and inquiring about restructuring your loan with them. If they are unwilling to help in that capacity, contact a mortgage broker that you are comfortable with and seek their help/advice. If you exhaust all of these options and you still have some time, get it listed with a Realtor ASAP and be realistic in thoughts of pricing strategy to unload it to save your future and you credit and not use it as a chance to try to pay off all current bills. Feel free to PM me if you want.

I am going thru this too (foreclosure possibly) and I have researched a lot of this. I have been trying to short sell my home since the end of May after being turned down for a loan modification because Wells "investors did not feel it was in their best interest". (Wells Fargo received $25 billion in TARP money!).

Unfortunately, I have about 2 1/2 weeks left to accomplish this or I will be foreclosed on. All advice given so far is good. Just remember to not go down without a fight.

That is not an option. We are divorced now and I recently relocated to a new area to live with my fiance. I do not want the house and can not afford the mortgage payment. He had the house on the market for quite some time but it didn't sell. Supposedly, he has it relisted now.

Why would you make oral agreements with an addict, lols. You stupid.

It was not an oral agreement. It was part of the separation agreement which was in writing by a lawyer. Don't be so quick to judge without knowing the details.

It was not an oral agreement. It was part of the separation agreement which was in writing by a lawyer. Don't be so quick to judge without knowing the details.

Then have your lawyer enforce the agreement :shrug:

Then have your lawyer enforce the agreement :shrug:

:yeahthat:


Will going to the mortgage company with a copy of the agreement help? I'm going to assume that it's not. Although it bites ass, it's still your responsibility to pay it as long as you name is on it. If you didn't follow up on the status and see to it that matters were taking care of, it's just as much your fault as it is his. :shrug:

:yeahthat:


Will going to the mortgage company with a copy of the agreement help? I'm going to assume that it's not. Although it bites ass, it's still your responsibility to pay it as long as you name is on it. If you didn't follow up on the status and see to it that matters were taking care of, it's just as much your fault as it is his. :shrug:

You should keep your mouth shut, about this subject.

You should keep your mouth shut, about this subject.

Why? I've owned a home and been married. Luckily, I had no problem getting my name off of it. But I've seen many people go thru this situation. Now, go drink a Coors Light and smile. :smile:

Why? I've owned a home and been married. Luckily, I had no problem getting my name off of it. But I've seen many people go thru this situation. Now, go drink a Coors Light and smile. :smile:

Ok.

Here is another question.

I have some friends that might end up getting their house foreclosed. The house is solely in his name. would it effect his wife's credit and would she be able to buy a smaller cheeper house solely in her name once they are out from under the other one?

Didn't they pass a bill to give all the people who signed up for loans they could never repay free money? Go get some of that.

Here is another question.

I have some friends that might end up getting their house foreclosed. The house is solely in his name. would it effect his wife's credit and would she be able to buy a smaller cheeper house solely in her name once they are out from under the other one?

The individual act of foreclosure on something not in her name will not impact her credit in any way.

However, if they have other accounts jointly she will feel whatever impact there along with him, because of him in other words.

This may ding her credit or at least cause her to have to explain it all more than a few times when she goes to purchase a new place. And she will not be able to use him or his income in any way to apply for any loans.

I am going thru this too (foreclosure possibly) and I have researched a lot of this. I have been trying to short sell my home since the end of May after being turned down for a loan modification because Wells "investors did not feel it was in their best interest". (Wells Fargo received $25 billion in TARP money!).

Unfortunately, I have about 2 1/2 weeks left to accomplish this or I will be foreclosed on. All advice given so far is good. Just remember to not go down without a fight.

how much for the home and where is it located?

The individual act of foreclosure on something not in her name will not impact her credit in any way.

However, if they have other accounts jointly she will feel whatever impact there along with him, because of him in other words.

This may ding her credit or at least cause her to have to explain it all more than a few times when she goes to purchase a new place. And she will not be able to use him or his income in any way to apply for any loans.

Well stated, Prof.

That is not an option. We are divorced now and I recently relocated to a new area to live with my fiance. I do not want the house and can not afford the mortgage payment. He had the house on the market for quite some time but it didn't sell. Supposedly, he has it relisted now.

If you are willing to PM me the address I can look into the listings to see if it is actually listed or not.

That is not an option. We are divorced now and I recently relocated to a new area to live with my fiance. I do not want the house and can not afford the mortgage payment. He had the house on the market for quite some time but it didn't sell. Supposedly, he has it relisted now.

I forgot to mention yesterday, if you are not comfortable with letting me know the address you can go to HomesDatabase - Home for Sale and Rent in DC, Maryland, Virginia, West Virginia, and Pennsylvania (http://www.homesdatabase.com) to see if it listed for yourself. Feel free to ask any more questions.

:yeahthat:


Will going to the mortgage company with a copy of the agreement help? I'm going to assume that it's not. Although it bites ass, it's still your responsibility to pay it as long as you name is on it. If you didn't follow up on the status and see to it that matters were taking care of, it's just as much your fault as it is his. :shrug:

He had the house on the market trying to sell it. He just took it off several months ago. He said he was refinancing and I had not spoken to him for about 2 months. I had no clue he was in the situation he is as far as losing his job and a possible foreclosure. As I said I no longer live in St. Mary's County which is where he lives.

He had the house on the market trying to sell it. He just took it off several months ago. He said he was refinancing and I had not spoken to him for about 2 months. I had no clue he was in the situation he is as far as losing his job and a possible foreclosure. As I said I no longer live in St. Mary's County which is where he lives.

See my previous posts.

Here's my situation. My ex and I have a home in both our names. When we separated last year we agreed that he could keep the house. He was supposed to refinance and have it in his name only. Obviously, he didn't do it. Bacause of his addictions, he no longer has a job and as a result can't make the mortgage payments. So I am going to get my credit all shot to hell because of him.
File a quitclaim and have your name removed from the deed before foreclosure.Quitclaim deed - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Quit_claim_deed)

File a quitclaim and have your name removed from the deed before foreclosure.Quitclaim deed - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Quit_claim_deed)

I had looked into the possibility of the quitclaim deed but unless I am not understanding it correctly it appears my name would remain on the deed and I would still be legally responsible for the mortgage payments.

If you are willing to PM me the address I can look into the listings to see if it is actually listed or not.

The house has been relisted. But it was on the market for over nine months before and it didn't sell.

File a quitclaim and have your name removed from the deed before foreclosure.Quitclaim deed - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Quit_claim_deed)

How would that help her? :confused:

I had looked into the possibility of the quitclaim deed but unless I am not understanding it correctly it appears my name would remain on the deed and I would still be legally responsible for the mortgage payments.

You understand it correct. You are still on the hook financially. You are just giiving up your interest in the property. You are not gaining anything here.