As the economy and real estate market continue to struggle, millions of Americans have lost their homes through foreclosure, short sale (when a property is sold for less than is owed) or a deed in lieu of foreclosure (when the bank takes ownership without foreclosure).
Even if you think you never want to own a home again, clean credit is important. Bad credit can make it more expensive to rent. In some fields, especially financial services, it can make it difficult to find or keep a job.
What affects recovery speed?
In a short sale where the balance is forgiven and no deficiency is recorded in public records, recovery can be quick. A foreclosure or bankruptcy can weigh you down for years.As long as 7 years.
But if someone has gone through foreclosure and still has a mountain of debt and not enough income, bankruptcy is worth considering, said Tracy Becker, the founder of North Shore Advisory, a credit-restoration company based in Tarrytown, N.Y. Sure, it will be another hard blow to your credit rating — but your credit most likely is already “wrecked,” at least for now, she said.
OK, so you have pushed the plunger,
And what about a future mortgage? Fannie Mae, Freddie Mac and the Federal Housing Administration set guidelines for how long a borrower must wait after a “significant derogatory event.”
There are plenty of asterisks and conditions. But to generalize, the wait is longest after a foreclosure. Extenuating circumstances like a job loss, illness or divorce reduce the wait.
With such circumstances, Fannie and Freddie specify a two-year wait after a short sale, deed in lieu, or discharge or dismissal of bankruptcy, and three years after foreclosure. Without extenuating circumstances, waits can extend to four years after bankruptcy and seven years after foreclosure.
Read the full report.
For your next title order or
if you have questions about what you see here, contact
Stephen M. Flatow, Esq.
Stephen's Title Agency, LLC
165 Passaic Avenue, Suite 101
Fairfield, NJ 07004
Tel 973-227-4724 - Fax 973-556-1628
E-mail Stephenstitle AT comcast.net - www.stephenstitle.com
Sometimes the easiest way to stop foreclosure should be to walk. If, after overlooking your financial situation, you arrive at the conclusion that eliminating your personal credit card debt and/or cramming down your mortgage won't be enough to set yourself on reasonable financial footing, and your home is "under water", then the greatest thing money could possibly be to convert your property over to the lender and begin anew.
ReplyDeleteAurora Foreclosure Attorney
I think the lesson that you need to learn here is that you have to know the things that are worth fighting for and the things that you better leave alone. You’re the only who knows if you can really pursue it or if you need to let it go. Sometimes, you will find a new and better solution by letting go. From there, you can bounce back from failure and have a smooth life again.
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